INSERT INTO `wp_posts` VALUES (1296,1,'2015-12-25 11:39:35','2015-12-25 11:39:35','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 <a title=\"Incoterms: Guide of everything you want to know about\" href=\"http://myseatime.com/blogadm/incoterms-guide-of-everything-you-want-to-know-about/\" target=\"_blank\">INCOTERMS</a> 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','','','2015-12-25 11:39:35','2015-12-25 11:39:35','',330,'http://myseatime.com/blogadm/330-revision-v1/',0,'revision','',0,0),(1297,1,'2015-12-25 11:40:56','2015-12-25 11:40:56','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 <a title=\"Incoterms: Guide of everything you want to know about\" href=\"http://myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">INCOTERMS</a> 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','','','2015-12-25 11:40:56','2015-12-25 11:40:56','',330,'http://myseatime.com/blogadm/330-revision-v1/',0,'revision','',0,0),(1298,1,'2015-12-25 11:41:38','2015-12-25 11:41:38','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 <a title=\"Incoterms: Guide of everything you want to know about\" href=\"www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">INCOTERMS</a> 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','','','2015-12-25 11:41:38','2015-12-25 11:41:38','',330,'http://myseatime.com/blogadm/330-revision-v1/',0,'revision','',0,0),(1299,1,'2015-12-25 11:43:06','2015-12-25 11:43:06','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 <a title=\"Incoterms: Guide of everything you want to know about\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">INCOTERMS</a> 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','','','2015-12-25 11:43:06','2015-12-25 11:43:06','',330,'http://myseatime.com/blogadm/330-revision-v1/',0,'revision','',0,0),(1300,1,'2015-12-25 11:43:46','2015-12-25 11:43:46','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 <a title=\"Incoterms: Guide of everything you want to know about\" href=\"http://www.myseatime.com/blog/detail/incoterms-guide-of-everything-you-want-to-know-about\" target=\"_blank\">INCOTERMS</a> 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','','','2015-12-25 11:43:46','2015-12-25 11:43:46','',330,'http://myseatime.com/blogadm/330-revision-v1/',0,'revision','',0,0),(1301,2,'2016-01-06 14:42:43','2016-01-06 14:42:43','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Different types of bill of ladings\" href=\"http://www.myseatime.com/blog/detail/bill-of-lading-what-it-is-and-what-purpose-it-solves\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n\r\n&nbsp;\r\n\r\nI am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n<strong>1) Bill of lading quantity not ready before vessel\'s departure.</strong> This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n<strong>2) Terms and conditions for the bill of lading not yet finalised.</strong> This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n<strong>3) The break-up of quantities not yet finalised.</strong> Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Seafarers','','publish','open','open','','a-practical-guide-for-masters-to-sign-bill-of-ladings','','','2016-01-07 11:39:06','2016-01-07 11:39:06','',0,'http://myseatime.com/blogadm/?p=1301',0,'post','',0,73),(1302,1,'2015-12-26 06:34:13','2015-12-26 06:34:13','Bill_of_Lading_Freight','Bill_of_Lading_Freight','','inherit','open','open','','bill_of_lading_freight','','','2015-12-26 06:34:33','2015-12-26 06:34:33','',1301,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png',0,'attachment','image/png',0,0),(1303,1,'2015-12-26 06:35:27','2015-12-26 06:35:27','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean. Master or carrier do not release the cargo if they do not receive bill of lading. Carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issueing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These are\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accrodance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h3>2. Master Signing bill of ladings</h3>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n1. Signing incomplete bill of ladings: In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n2. Format of bill of lading: The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n3. Date of Loading: Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n4. Correct Cargo quantity: Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master is required to refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n5. Freight Prepaid: There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2015-12-26 06:35:27','2015-12-26 06:35:27','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1304,1,'2015-12-26 19:18:56','2015-12-26 19:18:56','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean. Master or carrier do not release the cargo if they do not receive bill of lading. Carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issueing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These are\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accrodance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h3>2. Master Signing bill of ladings</h3>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n1. Signing incomplete bill of ladings: In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n2. Format of bill of lading: The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n3. Date of Loading: Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n4. Correct Cargo quantity: Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master is required to refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n5. Freight Prepaid: There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2015-12-26 19:18:56','2015-12-26 19:18:56','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1305,1,'2016-01-02 14:58:41','2016-01-02 14:58:41','','Incoterm','','inherit','open','open','','incoterm','','','2016-01-02 14:59:02','2016-01-02 14:59:02','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterm.jpg',0,'attachment','image/jpeg',0,0),(1306,1,'2016-01-02 14:59:37','2016-01-02 14:59:37','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.','Incoterms: Guide of everything you want to know about','','inherit','open','open','','1264-revision-v1','','','2016-01-02 14:59:37','2016-01-02 14:59:37','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1307,3,'2016-01-02 19:54:43','2016-01-02 19:54:43','DNV GL has recently completed several tests using drones to support the hull survey of two vessels. Conducted by the classification team based in Gdansk, Poland, the tests took place at the Remontowa shipyard. Using drones to visually check the condition of remote structural components has the potential to significantly reduce survey times and staging costs, while at the same time improving safety for the surveyors.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/DNV-GL-conducts-drone-inspection-of-ship.jpg\"><img class=\"aligncenter size-full wp-image-1308\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/DNV-GL-conducts-drone-inspection-of-ship.jpg\" alt=\"DNV GL drone inspection\" width=\"700\" height=\"465\" /></a>\r\n\r\n“We have been looking at ways we could help our customers by accelerating the survey process,” says Cezary Galinski, Manager of the DNV GL – Maritime classification flying squad based in Gdansk. “Camera equipped drones are now much more widely available and affordable, and by using them for a first screening we can identify areas that require closer inspection quickly and without extensive staging, which can be both costly and time-consuming.”\r\n\r\nThe tests used a camera-equipped drone to visually evaluate structural components through video streamed to a tablet. One surveyor operated the drone, while a second checked the video feed in real time. The stream was also recorded for review and documentation purposes. Equipped with a powerful headlight, the drone was able to produce a video of sufficient quality for initial inspection purposes. In the event any damage is detected, a traditional close-up survey may still be required.\r\n\r\n“We used a modified off-the-shelf drone for our tests,” explains Galinski. “Because there are currently no drones formally certified as explosion-proof commercially available, we performed a risk assessment. Of course, before the drone operation started, we also ensured that the cargo tank was gas-free and certified for safe entry.”\r\n\r\n“Our next step is to work with a more advanced tailor-made drone in early 2016,” says Galinski. “We are also developing a special guideline for performing drone-based surveys. This could open the way to remote or even autonomous inspections being carried out as part of our survey scheme in the near future,” he notes.\r\n\r\nDNV GL has a longstanding R&amp;D programme working on developing advanced inspection technologies, for example the IRIS system which can automatically associate photos onboard a ship with a 3D model of the vessel’s structure. “Using a drone in combination with a system like IRIS could be very beneficial to our customers. We have already demonstrated the ability to place images within a 3D model and furthermore to assess the individual findings. These are the first steps towards an automated survey process which might include using a drone to make the initial survey, taking the images generated and then running them through an algorithm to determine the hull condition,” says Dr. Pierre C. Sames, Director of Group Technology and Research.','DNV GL uses drone to inspect ship tanks','','publish','open','open','','dnv-gl-uses-drone-to-inspect-ship-tanks','','','2016-01-02 19:54:43','2016-01-02 19:54:43','',0,'http://myseatime.com/blogadm/?p=1307',0,'post','',0,35),(1308,1,'2016-01-02 16:33:02','2016-01-02 16:33:02','','DNV GL conducts drone inspection of ship','','inherit','open','open','','dnv-gl-conducts-drone-inspection-of-ship','','','2016-01-02 16:34:32','2016-01-02 16:34:32','',1307,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/DNV-GL-conducts-drone-inspection-of-ship.jpg',0,'attachment','image/jpeg',0,0),(1309,1,'2016-01-02 16:41:23','2016-01-02 16:41:23','DNV GL has recently completed several tests using drones to support the hull survey of two vessels. Conducted by the classification team based in Gdansk, Poland, the tests took place at the Remontowa shipyard. Using drones to visually check the condition of remote structural components has the potential to significantly reduce survey times and staging costs, while at the same time improving safety for the surveyors.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/DNV-GL-conducts-drone-inspection-of-ship.jpg\"><img class=\"aligncenter size-full wp-image-1308\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/DNV-GL-conducts-drone-inspection-of-ship.jpg\" alt=\"DNV GL drone inspection\" width=\"700\" height=\"465\" /></a>\r\n\r\n“We have been looking at ways we could help our customers by accelerating the survey process,” says Cezary Galinski, Manager of the DNV GL – Maritime classification flying squad based in Gdansk. “Camera equipped drones are now much more widely available and affordable, and by using them for a first screening we can identify areas that require closer inspection quickly and without extensive staging, which can be both costly and time-consuming.”\r\n\r\nThe tests used a camera-equipped drone to visually evaluate structural components through video streamed to a tablet. One surveyor operated the drone, while a second checked the video feed in real time. The stream was also recorded for review and documentation purposes. Equipped with a powerful headlight, the drone was able to produce a video of sufficient quality for initial inspection purposes. In the event any damage is detected, a traditional close-up survey may still be required.\r\n\r\n“We used a modified off-the-shelf drone for our tests,” explains Galinski. “Because there are currently no drones formally certified as explosion-proof commercially available, we performed a risk assessment. Of course, before the drone operation started, we also ensured that the cargo tank was gas-free and certified for safe entry.”\r\n\r\n“Our next step is to work with a more advanced tailor-made drone in early 2016,” says Galinski. “We are also developing a special guideline for performing drone-based surveys. This could open the way to remote or even autonomous inspections being carried out as part of our survey scheme in the near future,” he notes.\r\n\r\nDNV GL has a longstanding R&amp;D programme working on developing advanced inspection technologies, for example the IRIS system which can automatically associate photos onboard a ship with a 3D model of the vessel’s structure. “Using a drone in combination with a system like IRIS could be very beneficial to our customers. We have already demonstrated the ability to place images within a 3D model and furthermore to assess the individual findings. These are the first steps towards an automated survey process which might include using a drone to make the initial survey, taking the images generated and then running them through an algorithm to determine the hull condition,” says Dr. Pierre C. Sames, Director of Group Technology and Research.','DNV GL uses drone to inspect ship tanks','','inherit','open','open','','1307-revision-v1','','','2016-01-02 16:41:23','2016-01-02 16:41:23','',1307,'http://myseatime.com/blogadm/1307-revision-v1/',0,'revision','',0,0),(1310,3,'2016-01-02 20:13:03','2016-01-02 20:13:03','<p class=\"p1\"><span class=\"s1\"><b>London, UK, 21 December 2015</b> – Although demand growth is expected to recover next year after a very poor 2015, and supply growth is likely to be minimal, competition from other sectors will maintain pressure on the breakbulk shipping market, according to the latest edition of the <a href=\"http://www.drewry.co.uk/publications/view_publication.php?id=401\"><span class=\"s2\"><i>Multipurpose Shipping Market Review and Forecaster</i></span></a>, published by global shipping consultancy Drewry.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/image.php_.jpeg\"><img class=\"aligncenter size-full wp-image-1311\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/image.php_.jpeg\" alt=\"Drewry Forecast for 2016\" width=\"495\" height=\"524\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">The IMF has downgraded its expectations for both GDP and trade volume growth for 2015 and 2016. Added to this, container shipping demand recorded its slowest rate of growth in the third quarter of this year since 1979 (excluding 2009).</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">We expect further container shipping penetration into the project market and handy bulk carrier penetration into the breakbulk sectors. These factors will result in reduced market share for the multipurpose shipping fleet, commented Susan Oatway, senior associate at Drewry.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">While demand is growing (dry cargo demand is expected to reach average annual growth of 3% in the period to 2018) due to competition from other shipping sectors, the multipurpose fleet share is only expected to reach average annual growth of 1.4% over the same period.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"><i>“Our view is that improvement in this sector is still some way off. Overcapacity coupled with low freight rates is still a challenge for the profitability of dry bulk and container shipping sectors, and this is increasing their competition for both project and breakbulk cargoes,”</i> continued Oatway.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Meanwhile, the project carrier fleet is growing at a much faster rate than the simpler multipurpose fleet and vessel technology is improving every year, whether in terms of lift capacity or design. This sector’s ability to innovate, for example with the recent delivery of vessels equipped with DP systems, will be critical to its future in the face of continuing market share erosion of conventional commodities.</span></p>\r\n<p class=\"p1\"><b>Image: <a href=\"https://www.flickr.com/photos/jaxport/2573736910/\">JAXPORT</a> via <a href=\"http://foter.com/\">Foter.com</a> / <a href=\"http://creativecommons.org/licenses/by/2.0/\">CC BY</a></b></p>','Breakbulk Shipping Market to Remain Weak Until 2017 Says Drewry','','publish','open','open','','breakbulk-shipping-market-to-remain-weak-until-2017-says-drewry','','','2016-01-02 20:13:03','2016-01-02 20:13:03','',0,'http://myseatime.com/blogadm/?p=1310',0,'post','',0,54),(1311,1,'2016-01-02 20:04:14','2016-01-02 20:04:14','','Drewry Forecast for 2016','','inherit','open','open','','image-php','','','2016-01-02 20:05:16','2016-01-02 20:05:16','',1310,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/image.php_.jpeg',0,'attachment','image/jpeg',0,0),(1312,1,'2016-01-02 20:12:36','2016-01-02 20:12:36','','Container ship in port','','inherit','open','open','','container-ship-in-port','','','2016-01-02 20:12:36','2016-01-02 20:12:36','',1310,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/Container-ship-in-port.jpg',0,'attachment','image/jpeg',0,0),(1313,1,'2016-01-02 20:13:03','2016-01-02 20:13:03','<p class=\"p1\"><span class=\"s1\"><b>London, UK, 21 December 2015</b> – Although demand growth is expected to recover next year after a very poor 2015, and supply growth is likely to be minimal, competition from other sectors will maintain pressure on the breakbulk shipping market, according to the latest edition of the <a href=\"http://www.drewry.co.uk/publications/view_publication.php?id=401\"><span class=\"s2\"><i>Multipurpose Shipping Market Review and Forecaster</i></span></a>, published by global shipping consultancy Drewry.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/image.php_.jpeg\"><img class=\"aligncenter size-full wp-image-1311\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/image.php_.jpeg\" alt=\"Drewry Forecast for 2016\" width=\"495\" height=\"524\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">The IMF has downgraded its expectations for both GDP and trade volume growth for 2015 and 2016. Added to this, container shipping demand recorded its slowest rate of growth in the third quarter of this year since 1979 (excluding 2009).</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">We expect further container shipping penetration into the project market and handy bulk carrier penetration into the breakbulk sectors. These factors will result in reduced market share for the multipurpose shipping fleet, commented Susan Oatway, senior associate at Drewry.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">While demand is growing (dry cargo demand is expected to reach average annual growth of 3% in the period to 2018) due to competition from other shipping sectors, the multipurpose fleet share is only expected to reach average annual growth of 1.4% over the same period.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"><i>“Our view is that improvement in this sector is still some way off. Overcapacity coupled with low freight rates is still a challenge for the profitability of dry bulk and container shipping sectors, and this is increasing their competition for both project and breakbulk cargoes,”</i> continued Oatway.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Meanwhile, the project carrier fleet is growing at a much faster rate than the simpler multipurpose fleet and vessel technology is improving every year, whether in terms of lift capacity or design. This sector’s ability to innovate, for example with the recent delivery of vessels equipped with DP systems, will be critical to its future in the face of continuing market share erosion of conventional commodities.</span></p>\r\n<p class=\"p1\"><b>Image: <a href=\"https://www.flickr.com/photos/jaxport/2573736910/\">JAXPORT</a> via <a href=\"http://foter.com/\">Foter.com</a> / <a href=\"http://creativecommons.org/licenses/by/2.0/\">CC BY</a></b></p>','Breakbulk Shipping Market to Remain Weak Until 2017 Says Drewry','','inherit','open','open','','1310-revision-v1','','','2016-01-02 20:13:03','2016-01-02 20:13:03','',1310,'http://myseatime.com/blogadm/1310-revision-v1/',0,'revision','',0,0),(1314,1,'2016-01-06 17:16:08','2016-01-06 17:16:08','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Different types of bill of ladings\" href=\"http://www.myseatime.com/blog/detail/bill-of-lading-what-it-is-and-what-purpose-it-solves\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations.\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\n\n&nbsp;\n\nI am covering these in 3 sections\n<ol>\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\n	<li>Master signing bill of ladings, And</li>\n	<li>Dealing with illegal requests</li>\n</ol>\nLets dive in.\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\n\n<strong>1) Bill of lading quantity not ready before vessel\'s departure.</strong> This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\n\n<strong>2) Terms and conditions for the bill of lading not yet finalised.</strong> This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\n\n<strong>3) The break-up of quantities not yet finalised.</strong> Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\n\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\n\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\n\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\n\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\n\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\n\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\n\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\n\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\n\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\n\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\n\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\n\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\n\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\n\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\n\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\n\n<strong>3) Request to issue clean bill of lading</strong>\n\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\n\n<strong>4) Request to retain an original bill of lading on board</strong>\n\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\n\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\n\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\n\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\n\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\n\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\n\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\n\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-autosave-v1','','','2016-01-06 17:16:08','2016-01-06 17:16:08','',1301,'http://myseatime.com/blogadm/1301-autosave-v1/',0,'revision','',0,0),(1315,1,'2016-01-03 06:17:18','2016-01-03 06:17:18','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean. Master or carrier do not release the cargo if they do not receive bill of lading. Carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These are\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is \'particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h3>2. Master Signing bill of ladings</h3>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of discrepancy or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master is required to refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n\r\n&nbsp;\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. Again, Master must deny any such request. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading</strong>\r\n\r\n<strong>   </strong>','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-03 06:17:18','2016-01-03 06:17:18','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1316,1,'2016-01-03 11:11:05','2016-01-03 11:11:05','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','','inherit','open','open','','1264-revision-v1','','','2016-01-03 11:11:05','2016-01-03 11:11:05','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1317,1,'2016-01-05 05:23:52','2016-01-05 05:23:52','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean. Master or carrier do not release the cargo if they do not receive bill of lading. Carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issuing Letter of Authorization to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h3>2. Master Signing bill of ladings</h3>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n1. Signing incomplete bill of ladings: In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n2. Format of bill of lading: The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n3. Date of Loading: Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n4. Correct Cargo quantity: Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n5. Freight Prepaid: There are usually one of these two statements regarding freight that would be on bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n3. Dealing with Illegal requests\r\n\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. Again, Master must deny any such request. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo\r\n\r\n<strong>   </strong>','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-05 05:23:52','2016-01-05 05:23:52','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1318,1,'2016-01-05 05:26:33','2016-01-05 05:26:33','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean. Master or carrier do not release the cargo if they do not receive bill of lading. Carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These are\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is \'particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h3>2. Master Signing bill of ladings</h3>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of discrepancy or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master is required to refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n\r\n&nbsp;\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. Again, Master must deny any such request. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading</strong>\r\n\r\n<strong>   </strong>','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-05 05:26:33','2016-01-05 05:26:33','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1319,1,'2016-01-05 05:29:14','2016-01-05 05:29:14','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean. Master or carrier do not release the cargo if they do not receive bill of lading. Carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n\r\n<span style=\"font-size: 22px; font-weight: bold; line-height: 1.09091;\">2. Master Signing bill of ladings</span>\r\n\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n1. Signing incomplete bill of ladings: In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n2. Format of bill of lading: The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n3. Date of Loading: Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n4. Correct Cargo quantity: Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n\r\n&nbsp;\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. Again, Master must deny any such request. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-05 05:29:14','2016-01-05 05:29:14','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1320,1,'2016-01-05 05:30:11','2016-01-05 05:30:11','LOI Discharge instructions','LOI Discharge instructions','','inherit','open','open','','loi-discharge-instructions','','','2016-01-05 05:30:24','2016-01-05 05:30:24','',1301,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png',0,'attachment','image/png',0,0),(1321,1,'2016-01-05 05:31:28','2016-01-05 05:31:28','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean. Master or carrier do not release the cargo if they do not receive bill of lading. Carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n\r\n<span style=\"font-size: 22px; font-weight: bold; line-height: 1.09091;\">2. Master Signing bill of ladings</span>\r\n\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n1. Signing incomplete bill of ladings: In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n2. Format of bill of lading: The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n3. Date of Loading: Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n4. Correct Cargo quantity: Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n\r\n&nbsp;\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. Again, Master must deny any such request. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-05 05:31:28','2016-01-05 05:31:28','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1322,1,'2016-01-06 07:56:55','2016-01-06 07:56:55','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean. Master or carrier do not release the cargo if they do not receive bill of lading. Carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n\r\n<span style=\"font-size: 22px; font-weight: bold; line-height: 1.09091;\">2. Master Signing bill of ladings</span>\r\n\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n1. Signing incomplete bill of ladings: In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n2. Format of bill of lading: The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n3. Date of Loading: Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n4. Correct Cargo quantity: Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. Again, Master must deny any such request. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\n&nbsp;\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-06 07:56:55','2016-01-06 07:56:55','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1323,1,'2016-01-06 08:54:12','2016-01-06 08:54:12','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.','How confident are you about your ODMCS ?','','inherit','open','open','','413-revision-v1','','','2016-01-06 08:54:12','2016-01-06 08:54:12','',413,'http://myseatime.com/blogadm/413-revision-v1/',0,'revision','',0,0),(1324,1,'2016-01-06 12:20:19','2016-01-06 12:20:19','Number of bill of ladings','Number of bill of ladings','','inherit','open','open','','number-of-bill-of-ladings','','','2016-01-06 12:20:30','2016-01-06 12:20:30','',1301,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png',0,'attachment','image/png',0,0),(1325,1,'2016-01-06 12:39:37','0000-00-00 00:00:00','','Auto Draft','','auto-draft','open','open','','','','','2016-01-06 12:39:37','0000-00-00 00:00:00','',0,'http://myseatime.com/blogadm/?post_type=wprss_feed&p=1325',0,'wprss_feed','',0,0),(1326,1,'2016-01-06 13:09:42','2016-01-06 13:09:42','If you ask me to name one document that is most important in shipping trade, I would name it as \"<a title=\"Bill of lading: What it is and what purpose it solves ?\" href=\"http://myseatime.com/blogadm/lorem-ipsum/\">Bill of Lading</a>\". Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of everything about bill of ladings.\r\n<h3>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n\r\n<span style=\"font-size: 22px; font-weight: bold; line-height: 1.09091;\">2. Master Signing bill of ladings</span>\r\n\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-06 13:09:42','2016-01-06 13:09:42','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1327,1,'2016-01-06 13:35:25','2016-01-06 13:35:25','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n<h3>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n\r\n<span style=\"font-size: 22px; font-weight: bold; line-height: 1.09091;\">2. Master Signing bill of ladings</span>\r\n\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-06 13:35:25','2016-01-06 13:35:25','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1328,1,'2016-01-06 14:42:02','2016-01-06 14:42:02','Bill of ladings','Bill of ladings','','inherit','open','open','','bill-of-ladings','','','2016-01-06 14:42:14','2016-01-06 14:42:14','',1301,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg',0,'attachment','image/jpeg',0,0),(1329,1,'2016-01-06 14:42:43','2016-01-06 14:42:43','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h3>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h3>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n\r\n<span style=\"font-size: 22px; font-weight: bold; line-height: 1.09091;\">2. Master Signing bill of ladings</span>\r\n\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-06 14:42:43','2016-01-06 14:42:43','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1330,1,'2016-01-06 14:45:03','2016-01-06 14:45:03','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2>1. Issuing Letter of Authorisation to agents for signing bill of ladings</h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"font-size: 22px; line-height: 1.09091;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h3>3. Dealing with Illegal requests</h3>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-06 14:45:03','2016-01-06 14:45:03','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1331,1,'2016-01-06 14:47:04','2016-01-06 14:47:04','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"font-size: 22px; line-height: 1.09091; color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-06 14:47:04','2016-01-06 14:47:04','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1332,1,'2016-01-06 14:47:49','2016-01-06 14:47:49','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide for Masters to sign bill of ladings','','inherit','open','open','','1301-revision-v1','','','2016-01-06 14:47:49','2016-01-06 14:47:49','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1333,1,'2016-01-06 14:56:14','2016-01-06 14:56:14','If you ask me to name one document that is most important in shipping trade, I would name it as \"Bill of Lading\". Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 14:56:14','2016-01-06 14:56:14','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1334,1,'2016-01-06 14:58:28','2016-01-06 14:58:28','If you ask me to name one document that is most important in shipping trade, I would name it as \"<a title=\"Bill of lading: What it is and what purpose it solves ?\" href=\"http://myseatime.com/blogadm/lorem-ipsum/\">Bill of Lading</a>\". Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 14:58:28','2016-01-06 14:58:28','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1335,1,'2016-01-06 14:58:55','2016-01-06 14:58:55','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Bill of lading: What it is and what purpose it solves ?\" href=\"http://myseatime.com/blogadm/lorem-ipsum/\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 14:58:55','2016-01-06 14:58:55','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1336,1,'2016-01-06 15:00:02','2016-01-06 15:00:02','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Bill of lading: What it is and what purpose it solves ?\" href=\"http://myseatime.com/blogadm/lorem-ipsum/\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 15:00:02','2016-01-06 15:00:02','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1337,1,'2016-01-06 15:01:22','2016-01-06 15:01:22','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Bill of lading: What it is and what purpose it solves ?\" href=\"http://myseatime.com/blogadm/lorem-ipsum/\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\nShipper may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\nShipper may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by shipper, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from shipper or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 15:01:22','2016-01-06 15:01:22','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1338,1,'2016-01-06 16:17:16','2016-01-06 16:17:16','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Bill of lading: What it is and what purpose it solves ?\" href=\"http://myseatime.com/blogadm/lorem-ipsum/\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 16:17:16','2016-01-06 16:17:16','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1339,1,'2016-01-06 16:20:18','2016-01-06 16:20:18','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Bill of lading: What it is and what purpose it solves ?\" href=\"http://myseatime.com/blogadm/lorem-ipsum/\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 16:20:18','2016-01-06 16:20:18','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1340,1,'2016-01-06 16:25:38','2016-01-06 16:25:38','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Different types of bill of ladings\" href=\"http://myseatime.com/blogadm/different-types-of-bill-go-ladings/\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 16:25:38','2016-01-06 16:25:38','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1341,1,'2016-01-06 17:10:53','2016-01-06 17:10:53','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Different types of bill of ladings\" href=\"http://www.myseatime.com/blog/detail/different-types-of-bill-go-ladings\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations. I am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 17:10:53','2016-01-06 17:10:53','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1342,1,'2016-01-06 17:12:53','2016-01-06 17:12:53','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Different types of bill of ladings\" href=\"http://www.myseatime.com/blog/detail/bill-of-lading-what-it-is-and-what-purpose-it-solves\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n\r\n&nbsp;\r\n\r\nI am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://myseatime.com/blogadm/shipper-consignee-and-notify-party-explained/\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 17:12:53','2016-01-06 17:12:53','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1343,1,'2016-01-06 17:15:00','2016-01-06 17:15:00','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Different types of bill of ladings\" href=\"http://www.myseatime.com/blog/detail/bill-of-lading-what-it-is-and-what-purpose-it-solves\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n\r\n&nbsp;\r\n\r\nI am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n1) Bill of lading quantity not ready before vessel\'s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 17:15:00','2016-01-06 17:15:00','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1344,1,'2016-01-06 17:16:12','2016-01-06 17:16:12','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Different types of bill of ladings\" href=\"http://www.myseatime.com/blog/detail/bill-of-lading-what-it-is-and-what-purpose-it-solves\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n\r\n&nbsp;\r\n\r\nI am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n<strong>1) Bill of lading quantity not ready before vessel\'s departure.</strong> This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n<strong>2) Terms and conditions for the bill of lading not yet finalised.</strong> This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n<strong>3) The break-up of quantities not yet finalised.</strong> Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Masters','','inherit','open','open','','1301-revision-v1','','','2016-01-06 17:16:12','2016-01-06 17:16:12','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1345,1,'2016-01-07 04:52:15','2016-01-07 04:52:15','If you ask me to name one document that is most important in shipping trade, I would name it as <a title=\"Different types of bill of ladings\" href=\"http://www.myseatime.com/blog/detail/bill-of-lading-what-it-is-and-what-purpose-it-solves\" target=\"_blank\">Bill of Lading</a>. Banks do not issue funds, if the bill of lading is not clean.  Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\"><img class=\"aligncenter size-full wp-image-1328\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Bill-of-ladings.jpg\" alt=\"Bill of ladings\" /></a>\r\n\r\n&nbsp;\r\n\r\nI am covering these in 3 sections\r\n<ol>\r\n	<li>Issuing letter of authorisations to agents for signing bill of ladings</li>\r\n	<li>Master signing bill of ladings, And</li>\r\n	<li>Dealing with illegal requests</li>\r\n</ol>\r\nLets dive in.\r\n<h2><span style=\"color: #333399;\">1. Issuing Letter of Authorisation to agents for signing bill of ladings</span></h2>\r\nIt is usual nowadays for the agents to sign bill of lading on Master\'s behalf. There are few reasons why agent\'s are asked to sign bill of ladings on master\'s behalf. These can be\r\n\r\n<strong>1) Bill of lading quantity not ready before vessel\'s departure.</strong> This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.\r\n\r\n<strong>2) Terms and conditions for the bill of lading not yet finalised.</strong> This can happen if the format of the bill of lading is not yet agreed between the ship owners and the <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> (or shipper\'s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master\'s behalf.\r\n\r\n<strong>3) The break-up of quantities not yet finalised.</strong> Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.\r\n\r\nWhatever the reason, Master must receive explicit instructions from the owners about who will sign the bill of lading. If the agent has to sign bill of ladings on master\'s behalf, he would need master\'s authorisation to sign the bill of ladings. In such case, some agents may bring their own format of \"Letter of authorisation\" or they can ask master to draft one. In both the cases, Master must ensure that the letter of authorisation has all the element to safegaurd the interests of the vessel and the owners. The checks to be considered before issuing such authorisation can be\r\n\r\n1) The LOA should highlight the fact that \"bill of lading should be signed in strict accordance with the mate\'s receipt\". And while we put this in LOA, it is prudent to double check for correctness of details in Mate\'s receipt.\r\n\r\n2) LOA should also instruct the agent to send the draft copy of the B/L to the owners for their approval before signing it.\r\n\r\n3) LOA should instruct the agent to sign the bill of lading in strict compliance with the terms of the relevant charter party.\r\n\r\n4) LOA should give as much detail to the cargo as possible. Each bill of lading to be signed by agent would require a different LOA. If the break up quantities are not finalised by the charterers, Master may require to issue a common LOA for each grade and later issue LOA with split quanities.\r\n\r\nMaster should be more cautious with the letter of authorisations if the agent signing the bill of lading is not appointed by the owners.\r\n<h2><span style=\"color: #333399;\">2. Master Signing bill of ladings</span></h2>\r\nIf Master has to sign the bill of lading, there are few things he should be aware of and conduct himself in a certain way.\r\n\r\n<strong>1. Signing incomplete bill of ladings:</strong> In ports where EDP (early departure proceudres) is involved, shipper may present a blank or incomplete bill of lading for master to sign. No matter what, these should never be signed.\r\n\r\n<strong>2. Format of bill of lading:</strong> The first thing for the Master to check is if the correct form for the bill of ladings is used. There are different kind of forms in use in shipping industry. These could range from the standard form from different shipping agencies, P&amp;I club or shipping bodies. Or these could be a form that is formated by the ship owner to suit their requirement. Master must clarify with the ship owners as to which form is in use.  One way for Masters to do this to ask the owners to send him the draft copy of the final bill of lading that he will be signing. Draft copy would have all the details of final bill of ladings inserted in it except the cargo quantities. Once the Master has the draft bill of lading, he can just compare same with final bill of lading before signing.\r\n\r\n<strong>3. Date of Loading:</strong> Date of loading might look a small thing but wrong date on bill of lading can have major implications. Date of loading should be the actual date on which cargo was loaded on board. If the loading took more than one day, the date of completion of cargo should be inserted. If previous or post date is inserted into the bill of lading, shipowner might be at risk of claims from cargo interests. That is because the value of the cargo varies each day. Cargo buyer may have to pay more or less amount to seller depending upon the change in cargo price for that day. Whatever the change, someone (Buyer or seller of the cargo) will be at loss and they would pass this loss to the carrier. Even P&amp;I clubs do not entertain these claims and these would finally be out of pocket expenses for the owners.\r\n\r\n<strong>4. Correct Cargo quantity:</strong> Correct cargo quantity is most important information in the bill of lading. This is the information that is in direct control of master and his crew. If the vessel has received lesser quantity than the bill of lading quantity, Master should refrain from signing the bill of lading, even if terminal is ready to sign letter of descripency or letter of protest for difference in quantities. Master should follow the guidance provided in SMS manuals of the company or the charter party for the instructions to deal with such situations. Usually, charter party instruct the Masters to sign bill of ladings if difference in quantities is less than 0.3%. If the difference is more than 0.3%, master should refrain from signing the bill of lading and call P&amp;I club after consulting the ship owners.\r\n\r\n<strong>5. Freight Prepaid:</strong> There are usually one of these two statements regarding freight that would be bill of ladings. \"Freight Prepaid\" or \"Freight payable as per terms and conditions of relevant charter party\". Clause \"freight prepaid\" implies that carrier has already received the freight. Master must never sign bill of ladings with the clause \"freight prepaid\" without express permission from the shipowners. This is because of obvious reason that if the freight is not paid yet, you do not want to sign a legal document that states otherwise.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\"><img class=\"aligncenter size-full wp-image-1302\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Bill_of_Lading_Freight.png\" alt=\"Bill_of_Lading_Freight\" width=\"776\" height=\"451\" /></a>\r\n<h2><span style=\"color: #333399;\">3. Dealing with Illegal requests</span></h2>\r\nA Master in his career can come across number of different kind of pressures to sign a bill of lading that he is not suppose to sign. I personally have come across to some of these.  Let us see what these requests can be\r\n\r\n<strong>1) Request to sign bill of lading with ship shore quantity difference.</strong>\r\n\r\nTerminal may request master to sign bill of lading showing more loaded quantity than ship\'s figure. The terminal may ask the master to issue letter of protest for discrepancies in quantities and sign the bill of ladings.  The master may find himself under pressure for delays and terminal manager may on board with a letter of protest stating all delays will be on ship\'s account. Another one, terminal demanding the vessel to leave berth within three hours of completion of cargo. Whatever the case, Master must not come under pressure to sign bill of lading which he thinks he should not sign. Generally, Master can sign bill of lading if the ship shore quantity difference is lesser than 0.3%. If the difference is more than 0.3%, master should request for P&amp;I attendance and must never sign bill of lading unless matter has been sorted out.\r\n\r\n<strong>2) Request to sign blank or incomplete bill of ladings</strong>\r\n\r\nIn one sentence, the request must be denied. We have discussed earlier in this blog ,  the possible reasons for this request. In most cases the reason for this request is insufficient data due to EDP. Master should inform the owners and charterers if any such bill of lading is presented to him for signing.\r\n\r\n<strong>3) Request to issue clean bill of lading</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request the master to issue clean bill of lading with a logic that clean bill of lading is required for letter of credit from the bank. Though true, but that is a problem shipper has to deal with and master must only sign the bill of lading which describes the actual condition of the cargo.  Shipper may propose to indemnify master and owners of any consequences because of it. Master must resist from any of such pressures as there are huge risks involved in this. It does not matter if any indemnity letter was issued to master. If master issues a clean bill of lading despite inaccuracies, it will be assumed that cargo was loaded in apparent good condition. Owners would have little to defend for any cargo claims arising because of inaccurate bill of lading if clean bill of lading was issued by the master.\r\n\r\n<strong>4) Request to retain an original bill of lading on board</strong>\r\n\r\n<a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">Shipper</a> may request to keep one or more than one original bill of lading on board and carry same to discharge port. Shippers does this to avoid the possibility of original bill of lading not arriving at discharge port before vessel\'s arrival. This is particularly the case with short voyage where it is impossible for shipper to provide the original bill of lading at discharge port. Master usually signs three original bill of ladings and few of the non-negotiable copies of bill of ladings. The number of original bill of ladings signed by master is mentioned on each bill of ladings, usually on the bottom of front cover. None of these original bill of ladings can be carried on board to discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\"><img class=\"aligncenter size-full wp-image-1324\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Number-of-bill-of-ladings.png\" alt=\"Number of bill of ladings\" /></a>\r\n\r\nIf requested by <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a>, Master must deny any such request as their are risks involved with this. The main risk involved is the change of ownership of the cargo while the vessel is enroute. If there has been change of title of the cargo, this would reflect on the two bill of ladings but not on the bill of lading carried by th master onboard. So the bill of lading carried by the master may not be showing correct details to whom the cargo belongs. The ship owner will have absolutely no defense in wrongful delivery of the cargo in this case.\r\n\r\n<strong>5) Request to discharge cargo at different destination to that in bill of lading   </strong>\r\n\r\nIf a request is made to proceed to a port different than that mentioned in bill of lading, master must inform the ship owners. Apart from that he must proceed only when ship owners have safeguarded their interest. There are two risks involved in such a request. first, one of the original being presented at port of discharge stated in bill of lading. Second, claim for deviation to another port. Ship owners has the arrangements to deal with such requests, such as they can ask the shipper to re-issue the bill of lading after destroying the previous one. Whatever the arrangements,\r\n\r\n<strong>6) Request to discharge the cargo without production of original bill of lading</strong>\r\n\r\nThe practice of discharging the cargo against a LOI (Letter of indemnity) is so common specially in tanker trade that this can trick masters. Masters must ensure that direct request from charterers/shipper to discharge the cargo against such LOI should not be considered. Master must receive such instructions from the ship owners. If vessel is on time charter, charterer would receive the LOI from <a title=\"Shipper, consignee and Notify party, explained.\" href=\"http://www.myseatime.com/blog/detail/shipper-consignee-and-notify-party-explained\" target=\"_blank\">shipper</a> or sub charterer and instruct master to discharge the cargo. These instructions might look something like this\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\"><img class=\"aligncenter size-full wp-image-1320\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/LOI-Discharge-instructions.png\" alt=\"LOI Discharge instructions\" width=\"585\" height=\"344\" /></a>\r\n\r\nIn these cases, sometimes owners need LOI in their own format. Also such LOI from shipper or sub-charterer is indemnifying the charterers but not the owners. Owners are not under any contractual obligations with sub-charterers and such LOI might not be enough to protect owner\'s interest.  So in this case owners might need a separate LOI in their format from the charterers (time) of the vessel.\r\n\r\n&nbsp;','A practical guide of bill of lading for Seafarers','','inherit','open','open','','1301-revision-v1','','','2016-01-07 04:52:15','2016-01-07 04:52:15','',1301,'http://myseatime.com/blogadm/1301-revision-v1/',0,'revision','',0,0),(1346,3,'2016-01-07 10:51:44','2016-01-07 10:51:44','<p class=\"p1\"><span class=\"s1\">ClassNK has announced that it released amendments to its <i>Rules and Guidance for the Survey and Construction of Steel Ships</i> on 25 December 2015, including structural strength requirements of container carriers.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-Myseatime-image.png\"><img class=\"aligncenter size-full wp-image-1352\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-Myseatime-image.png\" alt=\"ClassNK Myseatime image\" /></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\">In line with its action plan for rule amendments and the recommendations by the MLIT Committee, ClassNK has updated its independent longitudinal strength requirements in consideration of the effects of whipping</span><span class=\"s2\"><sup>*</sup></span><span class=\"s1\">, and the effects of sea water pressure and container loads. The amendments also reflect the new IACS Unified Requirements (UR) S11A and S34.These amendments will 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>\r\n<p class=\"p1\"><span class=\"s1\">Mr. Yasushi Nakamura, ClassNK Representative Director and Executive Vice President said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The development and application of the container ship rule amendments reflects our firm commitment to providing the industry with the appropriate technical standards. The new rules will contribute to even safer ship building and design and we will continue devoting our effort to further improving safety in the maritime industry.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The amendments also include requirements related to the following:</span></p>\r\n\r\n<ul class=\"ul1\">\r\n	<li class=\"li1\"><span class=\"s1\">Propeller shaft and stern tube shaft surveys</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Welding procedures and related specifications</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Scope of application of fire-resistant cables</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Fire safety measures for vehicle carriers transporting motor vehicles powered by compressed hydrogen or compressed natural gas</span></li>\r\n</ul>','ClassNK releases amendments to class rules for structural strength of container ships','','publish','open','open','','class-rules-amendments-by-classnk-to-address-structural-strength-of-container-ships','','','2016-01-07 11:10:20','2016-01-07 11:10:20','',0,'http://myseatime.com/blogadm/?p=1346',0,'post','',0,9),(1347,1,'2016-01-07 10:05:04','2016-01-07 10:05:04','<p class=\"p1\"><span class=\"s1\">ClassNK has announced that it released amendments to its <i>Rules and Guidance for the Survey and Construction of Steel Ships</i> on 25 December 2015, including structural strength requirements of container carriers. </span></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\">In line with its action plan for rule amendments and the recommendations by the MLIT Committee, ClassNK has updated its independent longitudinal strength requirements in consideration of the effects of whipping</span><span class=\"s2\"><sup>*</sup></span><span class=\"s1\">, and the effects of sea water pressure and container loads. The amendments also reflect the new IACS Unified Requirements (UR) S11A and S34.These amendments will 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>\r\n<p class=\"p1\"><span class=\"s1\">Mr. Yasushi Nakamura, ClassNK Representative Director and Executive Vice President said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The development and application of the container ship rule amendments reflects our firm commitment to providing the industry with the appropriate technical standards. The new rules will contribute to even safer ship building and design and we will continue devoting our effort to further improving safety in the maritime industry.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The amendments also include requirements related to the following:</span></p>\r\n\r\n<ul class=\"ul1\">\r\n	<li class=\"li1\"><span class=\"s1\">Propeller shaft and stern tube shaft surveys</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Welding procedures and related specifications</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Scope of application of fire-resistant cables</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Fire safety measures for vehicle carriers transporting motor vehicles powered by compressed hydrogen or compressed natural gas</span></li>\r\n</ul>','Class rules amendments by ClassNK to address structural strength of container ships','','inherit','open','open','','1346-revision-v1','','','2016-01-07 10:05:04','2016-01-07 10:05:04','',1346,'http://myseatime.com/blogadm/1346-revision-v1/',0,'revision','',0,0),(1348,1,'2016-01-07 10:48:59','2016-01-07 10:48:59','ClassNK','ClassNK myseatime','','inherit','open','open','','classnk-myseatime','','','2016-01-07 10:49:39','2016-01-07 10:49:39','',1346,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-myseatime.jpg',0,'attachment','image/jpeg',0,0),(1349,1,'2016-01-07 10:51:44','2016-01-07 10:51:44','<p class=\"p1\"><span class=\"s1\">ClassNK has announced that it released amendments to its <i>Rules and Guidance for the Survey and Construction of Steel Ships</i> on 25 December 2015, including structural strength requirements of container carriers.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-myseatime.jpg\"><img class=\"aligncenter size-full wp-image-1348\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-myseatime.jpg\" alt=\"ClassNK myseatime\" /></a></p>\r\n<p class=\"p1\"></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\">In line with its action plan for rule amendments and the recommendations by the MLIT Committee, ClassNK has updated its independent longitudinal strength requirements in consideration of the effects of whipping</span><span class=\"s2\"><sup>*</sup></span><span class=\"s1\">, and the effects of sea water pressure and container loads. The amendments also reflect the new IACS Unified Requirements (UR) S11A and S34.These amendments will 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>\r\n<p class=\"p1\"><span class=\"s1\">Mr. Yasushi Nakamura, ClassNK Representative Director and Executive Vice President said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The development and application of the container ship rule amendments reflects our firm commitment to providing the industry with the appropriate technical standards. The new rules will contribute to even safer ship building and design and we will continue devoting our effort to further improving safety in the maritime industry.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The amendments also include requirements related to the following:</span></p>\r\n\r\n<ul class=\"ul1\">\r\n	<li class=\"li1\"><span class=\"s1\">Propeller shaft and stern tube shaft surveys</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Welding procedures and related specifications</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Scope of application of fire-resistant cables</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Fire safety measures for vehicle carriers transporting motor vehicles powered by compressed hydrogen or compressed natural gas</span></li>\r\n</ul>','Class rules amendments by ClassNK to address structural strength of container ships','','inherit','open','open','','1346-revision-v1','','','2016-01-07 10:51:44','2016-01-07 10:51:44','',1346,'http://myseatime.com/blogadm/1346-revision-v1/',0,'revision','',0,0),(1350,1,'2016-01-07 11:09:29','2016-01-07 11:09:29','<p class=\"p1\"><span class=\"s1\">ClassNK has announced that it released amendments to its <i>Rules and Guidance for the Survey and Construction of Steel Ships</i> on 25 December 2015, including structural strength requirements of container carriers.</span></p>\n<p class=\"p1\"></p>\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>\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>\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>\n<p class=\"p1\"><span class=\"s1\">In line with its action plan for rule amendments and the recommendations by the MLIT Committee, ClassNK has updated its independent longitudinal strength requirements in consideration of the effects of whipping</span><span class=\"s2\"><sup>*</sup></span><span class=\"s1\">, and the effects of sea water pressure and container loads. The amendments also reflect the new IACS Unified Requirements (UR) S11A and S34.These amendments will 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>\n<p class=\"p1\"><span class=\"s1\">Mr. Yasushi Nakamura, ClassNK Representative Director and Executive Vice President said: </span></p>\n\n<blockquote>\n<p class=\"p1\"><span class=\"s1\">The development and application of the container ship rule amendments reflects our firm commitment to providing the industry with the appropriate technical standards. The new rules will contribute to even safer ship building and design and we will continue devoting our effort to further improving safety in the maritime industry.</span></p>\n</blockquote>\n<p class=\"p1\"><span class=\"s1\">The amendments also include requirements related to the following:</span></p>\n\n<ul class=\"ul1\">\n	<li class=\"li1\"><span class=\"s1\">Propeller shaft and stern tube shaft surveys</span></li>\n	<li class=\"li1\"><span class=\"s1\">Welding procedures and related specifications</span></li>\n	<li class=\"li1\"><span class=\"s1\">Scope of application of fire-resistant cables</span></li>\n	<li class=\"li1\"><span class=\"s1\">Fire safety measures for vehicle carriers transporting motor vehicles powered by compressed hydrogen or compressed natural gas</span></li>\n</ul>','ClassNK releases amendments to class rules for structural strength of container ships','','inherit','open','open','','1346-autosave-v1','','','2016-01-07 11:09:29','2016-01-07 11:09:29','',1346,'http://myseatime.com/blogadm/1346-autosave-v1/',0,'revision','',0,0),(1351,1,'2016-01-07 10:57:29','2016-01-07 10:57:29','<p class=\"p1\"><span class=\"s1\">ClassNK has announced that it released amendments to its <i>Rules and Guidance for the Survey and Construction of Steel Ships</i> on 25 December 2015, including structural strength requirements of container carriers.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-myseatime.jpg\"><img class=\"aligncenter size-full wp-image-1348\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-myseatime.jpg\" alt=\"ClassNK myseatime\" /></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\">In line with its action plan for rule amendments and the recommendations by the MLIT Committee, ClassNK has updated its independent longitudinal strength requirements in consideration of the effects of whipping</span><span class=\"s2\"><sup>*</sup></span><span class=\"s1\">, and the effects of sea water pressure and container loads. The amendments also reflect the new IACS Unified Requirements (UR) S11A and S34.These amendments will 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>\r\n<p class=\"p1\"><span class=\"s1\">Mr. Yasushi Nakamura, ClassNK Representative Director and Executive Vice President said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The development and application of the container ship rule amendments reflects our firm commitment to providing the industry with the appropriate technical standards. The new rules will contribute to even safer ship building and design and we will continue devoting our effort to further improving safety in the maritime industry.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The amendments also include requirements related to the following:</span></p>\r\n\r\n<ul class=\"ul1\">\r\n	<li class=\"li1\"><span class=\"s1\">Propeller shaft and stern tube shaft surveys</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Welding procedures and related specifications</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Scope of application of fire-resistant cables</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Fire safety measures for vehicle carriers transporting motor vehicles powered by compressed hydrogen or compressed natural gas</span></li>\r\n</ul>','ClassNK releases amendments to class rules for structural strength of container ships','','inherit','open','open','','1346-revision-v1','','','2016-01-07 10:57:29','2016-01-07 10:57:29','',1346,'http://myseatime.com/blogadm/1346-revision-v1/',0,'revision','',0,0),(1352,1,'2016-01-07 11:09:57','2016-01-07 11:09:57','ClassNK Myseatime image','ClassNK Myseatime image','','inherit','open','open','','classnk-myseatime-image','','','2016-01-07 11:10:05','2016-01-07 11:10:05','',1346,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-Myseatime-image.png',0,'attachment','image/png',0,0),(1353,1,'2016-01-07 11:10:20','2016-01-07 11:10:20','<p class=\"p1\"><span class=\"s1\">ClassNK has announced that it released amendments to its <i>Rules and Guidance for the Survey and Construction of Steel Ships</i> on 25 December 2015, including structural strength requirements of container carriers.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-Myseatime-image.png\"><img class=\"aligncenter size-full wp-image-1352\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/ClassNK-Myseatime-image.png\" alt=\"ClassNK Myseatime image\" /></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\">In line with its action plan for rule amendments and the recommendations by the MLIT Committee, ClassNK has updated its independent longitudinal strength requirements in consideration of the effects of whipping</span><span class=\"s2\"><sup>*</sup></span><span class=\"s1\">, and the effects of sea water pressure and container loads. The amendments also reflect the new IACS Unified Requirements (UR) S11A and S34.These amendments will 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>\r\n<p class=\"p1\"><span class=\"s1\">Mr. Yasushi Nakamura, ClassNK Representative Director and Executive Vice President said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The development and application of the container ship rule amendments reflects our firm commitment to providing the industry with the appropriate technical standards. The new rules will contribute to even safer ship building and design and we will continue devoting our effort to further improving safety in the maritime industry.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The amendments also include requirements related to the following:</span></p>\r\n\r\n<ul class=\"ul1\">\r\n	<li class=\"li1\"><span class=\"s1\">Propeller shaft and stern tube shaft surveys</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Welding procedures and related specifications</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Scope of application of fire-resistant cables</span></li>\r\n	<li class=\"li1\"><span class=\"s1\">Fire safety measures for vehicle carriers transporting motor vehicles powered by compressed hydrogen or compressed natural gas</span></li>\r\n</ul>','ClassNK releases amendments to class rules for structural strength of container ships','','inherit','open','open','','1346-revision-v1','','','2016-01-07 11:10:20','2016-01-07 11:10:20','',1346,'http://myseatime.com/blogadm/1346-revision-v1/',0,'revision','',0,0),(1354,3,'2016-01-07 12:15:35','2016-01-07 12:15:35','To meet rising demand for cruise vacations -- one of the fastest growing segments of the vacation industry -- four of company\'s 10 brands will add new ships in 2016\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Carnival-Cruise.jpg\"><img class=\"aligncenter size-full wp-image-1355\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Carnival-Cruise.jpg\" alt=\"Photo credit: PhotoRhapsody via Foter.com / CC BY-NC-SA\" /></a>\r\n\r\nNew ships underscore the world\'s largest travel and leisure company\'s commitment to bring innovative, energy efficient and state-of-the-art ships to industry-leading fleetCarnival Corporation will launch four new ships in 2016 across four of its global cruise brands. These additions are part of the 17 ships scheduled for delivery for Carnival Corporation\'s 10 brands through 2020, creating measured capacity growth over time that enables the company\'s global fleet to meet accelerating demand for cruise vacations in every region of the world.\r\n<blockquote>As we execute our fleet enhancement plan -- which includes a long-term strategy for bringing highly efficient, state-of-the-art ships to market and elevating the overall cruise experience, we are excited about seeing these new ships come to life this year,\" said Arnold Donald, CEO of Carnival Corporation. \"With each new ship we introduce, we generate new levels of excitement it creates for our guests and the industry. It also supports our goal to provide the best possible vacation experience at a value that land-based vacations cannot match. In the end, with our existing and new ships, our focus is for our guests to come away from a cruise vacation having had a great time and looking forward to going on another cruise.</blockquote>\r\nDonald added: \"We also remain focused on managing our fleet capacity in a responsible way by delivering and refurbishing ships that are innovative and efficient, while we phase out some of our existing ships – all designed to reinvigorate the options available to travelers looking to explore the more than 700 destinations we visit around the world.\"\r\n\r\nThe four new ships scheduled to join Carnival Corporation\'s industry-leading fleet of 99 ships in 2016 include:\r\n\r\n<b>Holland America Line: ms Koningsdam</b> – Official delivery date expected in April 2016\r\nCurrently under construction at Fincantieri\'s Marghera shipyard in Italy, the 99,500 gross ton Koningsdam represents a new Pinnacle Class of ship for Holland America Line and it is being designed by famed hospitality designer Adam D. Tihany and Architect and Designer Bjørn Storbraaten. Guests will have the opportunity to enjoy fine dining in several alternative restaurants, including Sel de Mer, a new French seafood brasserie; a new immersive farm-to-table dinner experience in the Culinary Arts Center presented by Food &amp; Wine magazine; a re-designed casual Lido Market with themed serving stations; a stunning main dining room; and favorites such as Pinnacle Grill, Canaletto Italian restaurant and pan-Asian Tamarind. The ship also will feature Holland America Line\'s first purpose-built staterooms for families, in addition to single staterooms that together make up spacious accommodations for the ship\'s 2,650 guests. Onboard entertainment will be taken to a new level with the energetic Music Walk area featuring all genres of music showcased in venues including Lincoln Center Stage, offering chamber music nightly; Billboard Onboard, where live musicians rock the crowd with chart-topping hits; and the popular B.B. King\'s Blues Club in the Queen\'s Lounge, bringing the best of Memphis music to sea. World Stage brings 270-degree LED projection to the main show lounge, enabling new concepts for show-time performances and immersing the audience in panoramic visual and sound effects.\r\n\r\n<b>Carnival Cruise Line: Carnival Vista</b> – Official delivery expected in April 2016. From a unique suspended cycling experience called SkyRide and the innovative Family Harbor staterooms and suites featuring a \"family concierge\" to cruising\'s first IMAX Theater and the line\'s first on-board brewery, Carnival Vista promises fun for guests of all ages. The largest ship in the Carnival fleet, Carnival Vista will measure 133,500 tons, 1,055 feet long and have a guest capacity of 3,954. Carnival Vista is scheduled to enter service on May 1, 2016, initially sailing from Europe. After repositioning to New York for a series of voyages in November 2016, Carnival Vista will reposition to Miami to launch year-round Caribbean service later that month.\r\n\r\n<b>AIDA Cruises: AIDAprima</b> – Official delivery date expected in April 2016\r\nAIDAprima will be the newest flagship for AIDA Cruises, with 1,643 cabins at 124,100 gross tons. In addition to being one of the most technologically advanced vessels in the world, it will join its fleet as the most environmentally friendly cruise ship in the world. A new air lubrication system will pump bubbles below the waterline, reducing friction and lowering fuel consumption by allowing the ship to ride on a cushion of air. Ship features include \"The Beach Club\" – a transparent dome providing a place for guests to hang out by the pool regardless of weather – a water slide, high ropes course and the new AIDA Mini Club, which will provide childcare for kids six months and up.\r\n\r\n<b>Seabourn: Seabourn Encore</b> – Official delivery date expected in December 2016\r\nSeabourn Encore, fashioned by hospitality design icon Adam D. Tihany, will feature contemporary interiors and modern design elements and innovations consistent with the line\'s reputation for understated elegance. Seabourn Encore will expand and build on the line\'s award-winning and highly acclaimed Odyssey-class ships, which revolutionized ultra-luxury cruising with enhanced accommodations and innovative amenities when they were introduced between 2009 and 2011. The 40,350-gross ton ship will be configured with one additional deck and new expanded public areas, and is expected to carry 600 guests, based on double occupancy. In addition, every suite will feature a private veranda. Seabourn Encore will maintain the line\'s high ratio of space per guest, enabling highly personalized service by close to one staff member for each guest on board.\r\n\r\n<b>More New Ships to Join the Fleet in Coming Years</b>In December, Carnival Corporation announced that it has signed a memo of agreement with Italian shipbuilder Fincantieri S.p.A. to build four new cruise ships with final contracts expected to be executed in 2016. Two of the four new ships will be built for Costa Asia for deployment in China, and one will be built each for P&amp;O Cruises Australia and Princess Cruises.\r\n\r\nAdditionally, in 2015 Carnival announced the finalization of a contract with Meyer Werft to build four next-generation cruise ships with the largest guest capacity in the world. The ships will be manufactured for Costa Cruises and AIDA Cruises, and they will be the first in the cruise industry to be powered at sea by Liquefied Natural Gas (LNG) -- the world\'s cleanest burning fossil fuel.\r\n\r\nWith these new agreements, Carnival Corporation has 17 new ships scheduled to be delivered between 2016 and 2020.','Year 2016 to bring four new ships for Carnival Corporation','','publish','open','open','','2016-will-bring-four-new-ships-for-carnival-corporation','','','2016-01-07 12:16:35','2016-01-07 12:16:35','',0,'http://myseatime.com/blogadm/?p=1354',0,'post','',0,16),(1355,1,'2016-01-07 12:14:52','2016-01-07 12:14:52','Carnival Cruise','Carnival Cruise','Photo credit: PhotoRhapsody via Foter.com / CC BY-NC-SA','inherit','open','open','','carnival-cruise','','','2016-01-07 12:15:10','2016-01-07 12:15:10','',1354,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/Carnival-Cruise.jpg',0,'attachment','image/jpeg',0,0),(1356,1,'2016-01-07 12:15:35','2016-01-07 12:15:35','To meet rising demand for cruise vacations -- one of the fastest growing segments of the vacation industry -- four of company\'s 10 brands will add new ships in 2016\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Carnival-Cruise.jpg\"><img class=\"aligncenter size-full wp-image-1355\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Carnival-Cruise.jpg\" alt=\"Photo credit: PhotoRhapsody via Foter.com / CC BY-NC-SA\" /></a>\r\n\r\nNew ships underscore the world\'s largest travel and leisure company\'s commitment to bring innovative, energy efficient and state-of-the-art ships to industry-leading fleetCarnival Corporation will launch four new ships in 2016 across four of its global cruise brands. These additions are part of the 17 ships scheduled for delivery for Carnival Corporation\'s 10 brands through 2020, creating measured capacity growth over time that enables the company\'s global fleet to meet accelerating demand for cruise vacations in every region of the world.\r\n<blockquote>As we execute our fleet enhancement plan -- which includes a long-term strategy for bringing highly efficient, state-of-the-art ships to market and elevating the overall cruise experience, we are excited about seeing these new ships come to life this year,\" said Arnold Donald, CEO of Carnival Corporation. \"With each new ship we introduce, we generate new levels of excitement it creates for our guests and the industry. It also supports our goal to provide the best possible vacation experience at a value that land-based vacations cannot match. In the end, with our existing and new ships, our focus is for our guests to come away from a cruise vacation having had a great time and looking forward to going on another cruise.</blockquote>\r\nDonald added: \"We also remain focused on managing our fleet capacity in a responsible way by delivering and refurbishing ships that are innovative and efficient, while we phase out some of our existing ships – all designed to reinvigorate the options available to travelers looking to explore the more than 700 destinations we visit around the world.\"\r\n\r\nThe four new ships scheduled to join Carnival Corporation\'s industry-leading fleet of 99 ships in 2016 include:\r\n\r\n<b>Holland America Line: ms Koningsdam</b> – Official delivery date expected in April 2016\r\nCurrently under construction at Fincantieri\'s Marghera shipyard in Italy, the 99,500 gross ton Koningsdam represents a new Pinnacle Class of ship for Holland America Line and it is being designed by famed hospitality designer Adam D. Tihany and Architect and Designer Bjørn Storbraaten. Guests will have the opportunity to enjoy fine dining in several alternative restaurants, including Sel de Mer, a new French seafood brasserie; a new immersive farm-to-table dinner experience in the Culinary Arts Center presented by Food &amp; Wine magazine; a re-designed casual Lido Market with themed serving stations; a stunning main dining room; and favorites such as Pinnacle Grill, Canaletto Italian restaurant and pan-Asian Tamarind. The ship also will feature Holland America Line\'s first purpose-built staterooms for families, in addition to single staterooms that together make up spacious accommodations for the ship\'s 2,650 guests. Onboard entertainment will be taken to a new level with the energetic Music Walk area featuring all genres of music showcased in venues including Lincoln Center Stage, offering chamber music nightly; Billboard Onboard, where live musicians rock the crowd with chart-topping hits; and the popular B.B. King\'s Blues Club in the Queen\'s Lounge, bringing the best of Memphis music to sea. World Stage brings 270-degree LED projection to the main show lounge, enabling new concepts for show-time performances and immersing the audience in panoramic visual and sound effects.\r\n\r\n<b>Carnival Cruise Line: Carnival Vista</b> – Official delivery expected in April 2016. From a unique suspended cycling experience called SkyRide and the innovative Family Harbor staterooms and suites featuring a \"family concierge\" to cruising\'s first IMAX Theater and the line\'s first on-board brewery, Carnival Vista promises fun for guests of all ages. The largest ship in the Carnival fleet, Carnival Vista will measure 133,500 tons, 1,055 feet long and have a guest capacity of 3,954. Carnival Vista is scheduled to enter service on May 1, 2016, initially sailing from Europe. After repositioning to New York for a series of voyages in November 2016, Carnival Vista will reposition to Miami to launch year-round Caribbean service later that month.\r\n\r\n<b>AIDA Cruises: AIDAprima</b> – Official delivery date expected in April 2016\r\nAIDAprima will be the newest flagship for AIDA Cruises, with 1,643 cabins at 124,100 gross tons. In addition to being one of the most technologically advanced vessels in the world, it will join its fleet as the most environmentally friendly cruise ship in the world. A new air lubrication system will pump bubbles below the waterline, reducing friction and lowering fuel consumption by allowing the ship to ride on a cushion of air. Ship features include \"The Beach Club\" – a transparent dome providing a place for guests to hang out by the pool regardless of weather – a water slide, high ropes course and the new AIDA Mini Club, which will provide childcare for kids six months and up.\r\n\r\n<b>Seabourn: Seabourn Encore</b> – Official delivery date expected in December 2016\r\nSeabourn Encore, fashioned by hospitality design icon Adam D. Tihany, will feature contemporary interiors and modern design elements and innovations consistent with the line\'s reputation for understated elegance. Seabourn Encore will expand and build on the line\'s award-winning and highly acclaimed Odyssey-class ships, which revolutionized ultra-luxury cruising with enhanced accommodations and innovative amenities when they were introduced between 2009 and 2011. The 40,350-gross ton ship will be configured with one additional deck and new expanded public areas, and is expected to carry 600 guests, based on double occupancy. In addition, every suite will feature a private veranda. Seabourn Encore will maintain the line\'s high ratio of space per guest, enabling highly personalized service by close to one staff member for each guest on board.\r\n\r\n<b>More New Ships to Join the Fleet in Coming Years</b>In December, Carnival Corporation announced that it has signed a memo of agreement with Italian shipbuilder Fincantieri S.p.A. to build four new cruise ships with final contracts expected to be executed in 2016. Two of the four new ships will be built for Costa Asia for deployment in China, and one will be built each for P&amp;O Cruises Australia and Princess Cruises.\r\n\r\nAdditionally, in 2015 Carnival announced the finalization of a contract with Meyer Werft to build four next-generation cruise ships with the largest guest capacity in the world. The ships will be manufactured for Costa Cruises and AIDA Cruises, and they will be the first in the cruise industry to be powered at sea by Liquefied Natural Gas (LNG) -- the world\'s cleanest burning fossil fuel.\r\n\r\nWith these new agreements, Carnival Corporation has 17 new ships scheduled to be delivered between 2016 and 2020.','2016 will bring four new ships for Carnival Corporation','','inherit','open','open','','1354-revision-v1','','','2016-01-07 12:15:35','2016-01-07 12:15:35','',1354,'http://myseatime.com/blogadm/1354-revision-v1/',0,'revision','',0,0),(1357,1,'2016-01-07 12:16:25','2016-01-07 12:16:25','To meet rising demand for cruise vacations -- one of the fastest growing segments of the vacation industry -- four of company\'s 10 brands will add new ships in 2016\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Carnival-Cruise.jpg\"><img class=\"aligncenter size-full wp-image-1355\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/Carnival-Cruise.jpg\" alt=\"Photo credit: PhotoRhapsody via Foter.com / CC BY-NC-SA\" /></a>\r\n\r\nNew ships underscore the world\'s largest travel and leisure company\'s commitment to bring innovative, energy efficient and state-of-the-art ships to industry-leading fleetCarnival Corporation will launch four new ships in 2016 across four of its global cruise brands. These additions are part of the 17 ships scheduled for delivery for Carnival Corporation\'s 10 brands through 2020, creating measured capacity growth over time that enables the company\'s global fleet to meet accelerating demand for cruise vacations in every region of the world.\r\n<blockquote>As we execute our fleet enhancement plan -- which includes a long-term strategy for bringing highly efficient, state-of-the-art ships to market and elevating the overall cruise experience, we are excited about seeing these new ships come to life this year,\" said Arnold Donald, CEO of Carnival Corporation. \"With each new ship we introduce, we generate new levels of excitement it creates for our guests and the industry. It also supports our goal to provide the best possible vacation experience at a value that land-based vacations cannot match. In the end, with our existing and new ships, our focus is for our guests to come away from a cruise vacation having had a great time and looking forward to going on another cruise.</blockquote>\r\nDonald added: \"We also remain focused on managing our fleet capacity in a responsible way by delivering and refurbishing ships that are innovative and efficient, while we phase out some of our existing ships – all designed to reinvigorate the options available to travelers looking to explore the more than 700 destinations we visit around the world.\"\r\n\r\nThe four new ships scheduled to join Carnival Corporation\'s industry-leading fleet of 99 ships in 2016 include:\r\n\r\n<b>Holland America Line: ms Koningsdam</b> – Official delivery date expected in April 2016\r\nCurrently under construction at Fincantieri\'s Marghera shipyard in Italy, the 99,500 gross ton Koningsdam represents a new Pinnacle Class of ship for Holland America Line and it is being designed by famed hospitality designer Adam D. Tihany and Architect and Designer Bjørn Storbraaten. Guests will have the opportunity to enjoy fine dining in several alternative restaurants, including Sel de Mer, a new French seafood brasserie; a new immersive farm-to-table dinner experience in the Culinary Arts Center presented by Food &amp; Wine magazine; a re-designed casual Lido Market with themed serving stations; a stunning main dining room; and favorites such as Pinnacle Grill, Canaletto Italian restaurant and pan-Asian Tamarind. The ship also will feature Holland America Line\'s first purpose-built staterooms for families, in addition to single staterooms that together make up spacious accommodations for the ship\'s 2,650 guests. Onboard entertainment will be taken to a new level with the energetic Music Walk area featuring all genres of music showcased in venues including Lincoln Center Stage, offering chamber music nightly; Billboard Onboard, where live musicians rock the crowd with chart-topping hits; and the popular B.B. King\'s Blues Club in the Queen\'s Lounge, bringing the best of Memphis music to sea. World Stage brings 270-degree LED projection to the main show lounge, enabling new concepts for show-time performances and immersing the audience in panoramic visual and sound effects.\r\n\r\n<b>Carnival Cruise Line: Carnival Vista</b> – Official delivery expected in April 2016. From a unique suspended cycling experience called SkyRide and the innovative Family Harbor staterooms and suites featuring a \"family concierge\" to cruising\'s first IMAX Theater and the line\'s first on-board brewery, Carnival Vista promises fun for guests of all ages. The largest ship in the Carnival fleet, Carnival Vista will measure 133,500 tons, 1,055 feet long and have a guest capacity of 3,954. Carnival Vista is scheduled to enter service on May 1, 2016, initially sailing from Europe. After repositioning to New York for a series of voyages in November 2016, Carnival Vista will reposition to Miami to launch year-round Caribbean service later that month.\r\n\r\n<b>AIDA Cruises: AIDAprima</b> – Official delivery date expected in April 2016\r\nAIDAprima will be the newest flagship for AIDA Cruises, with 1,643 cabins at 124,100 gross tons. In addition to being one of the most technologically advanced vessels in the world, it will join its fleet as the most environmentally friendly cruise ship in the world. A new air lubrication system will pump bubbles below the waterline, reducing friction and lowering fuel consumption by allowing the ship to ride on a cushion of air. Ship features include \"The Beach Club\" – a transparent dome providing a place for guests to hang out by the pool regardless of weather – a water slide, high ropes course and the new AIDA Mini Club, which will provide childcare for kids six months and up.\r\n\r\n<b>Seabourn: Seabourn Encore</b> – Official delivery date expected in December 2016\r\nSeabourn Encore, fashioned by hospitality design icon Adam D. Tihany, will feature contemporary interiors and modern design elements and innovations consistent with the line\'s reputation for understated elegance. Seabourn Encore will expand and build on the line\'s award-winning and highly acclaimed Odyssey-class ships, which revolutionized ultra-luxury cruising with enhanced accommodations and innovative amenities when they were introduced between 2009 and 2011. The 40,350-gross ton ship will be configured with one additional deck and new expanded public areas, and is expected to carry 600 guests, based on double occupancy. In addition, every suite will feature a private veranda. Seabourn Encore will maintain the line\'s high ratio of space per guest, enabling highly personalized service by close to one staff member for each guest on board.\r\n\r\n<b>More New Ships to Join the Fleet in Coming Years</b>In December, Carnival Corporation announced that it has signed a memo of agreement with Italian shipbuilder Fincantieri S.p.A. to build four new cruise ships with final contracts expected to be executed in 2016. Two of the four new ships will be built for Costa Asia for deployment in China, and one will be built each for P&amp;O Cruises Australia and Princess Cruises.\r\n\r\nAdditionally, in 2015 Carnival announced the finalization of a contract with Meyer Werft to build four next-generation cruise ships with the largest guest capacity in the world. The ships will be manufactured for Costa Cruises and AIDA Cruises, and they will be the first in the cruise industry to be powered at sea by Liquefied Natural Gas (LNG) -- the world\'s cleanest burning fossil fuel.\r\n\r\nWith these new agreements, Carnival Corporation has 17 new ships scheduled to be delivered between 2016 and 2020.','Year 2016 to bring four new ships for Carnival Corporation','','inherit','open','open','','1354-revision-v1','','','2016-01-07 12:16:25','2016-01-07 12:16:25','',1354,'http://myseatime.com/blogadm/1354-revision-v1/',0,'revision','',0,0),(1358,3,'2016-01-07 17:52:57','2016-01-07 17:52:57','MSC Mediterranean Shipping Company S.A has resumed vessel operations to Iran, after services were suspended in 2012 in response to trade sanctions. From April 2014, to maintain services to customers, MSC partially resumed operations by utilising a third party feeder service which allowed cargo to be transshipped in Jebel Ali. On 31st December 2015, MSC’s 9,400 TEU vessel MSC Domitille called at the southern Iran port of Shahid Rajei (Bandar Abbas), marking the beginning of regular calls for MSC and paving the way for resuming business with Iran.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/MSC-Ship-in-China-Myseatime.jpg\"><img class=\"aligncenter size-full wp-image-1359\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/MSC-Ship-in-China-Myseatime.jpg\" alt=\"MSC Ship in China Myseatime\" /></a>\r\n\r\nMSC Domitille discharged 599 TEUs of cargo, or 300 containers of foodstuffs as well as agricultural commodities. The vessel operates on the New Falcon service, between Asia and the Middle East, with transit times of 21 days from Shanghai to Shahid Rajei.\r\nPort rotation: Xingang, Busan, Ningbo, Shanghai, Fuzhou, Chiwan, Tanjung Pelepas, Singapore, Colombo, Jebel Ali, Bandar Abbas, Ad Dammam, Jubail, Jebel Ali, Mundra, Nhava Sheva, Singapore, Nansha, Xingang.\r\n\r\nMSC’s president and CEO Diego Aponte was invited to Iran last year by the government for informal meetings with logistics partners to understand the trading landscape and prepare the ground for business operations in post-sanctions Iran.','MSC resumes vessel operations in Iran','','publish','open','open','','msc-resumes-vessel-operations-in-iran','','','2016-01-07 17:52:57','2016-01-07 17:52:57','',0,'http://myseatime.com/blogadm/?p=1358',0,'post','',0,7),(1359,1,'2016-01-07 17:47:57','2016-01-07 17:47:57','MSC Ship in China Myseatime','MSC Ship in China Myseatime','','inherit','open','open','','msc-ship-in-china-myseatime','','','2016-01-07 17:48:11','2016-01-07 17:48:11','',1358,'http://myseatime.com/blogadm/wp-content/uploads/2016/01/MSC-Ship-in-China-Myseatime.jpg',0,'attachment','image/jpeg',0,0),(1360,1,'2016-01-07 17:52:57','2016-01-07 17:52:57','MSC Mediterranean Shipping Company S.A has resumed vessel operations to Iran, after services were suspended in 2012 in response to trade sanctions. From April 2014, to maintain services to customers, MSC partially resumed operations by utilising a third party feeder service which allowed cargo to be transshipped in Jebel Ali. On 31st December 2015, MSC’s 9,400 TEU vessel MSC Domitille called at the southern Iran port of Shahid Rajei (Bandar Abbas), marking the beginning of regular calls for MSC and paving the way for resuming business with Iran.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/MSC-Ship-in-China-Myseatime.jpg\"><img class=\"aligncenter size-full wp-image-1359\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2016/01/MSC-Ship-in-China-Myseatime.jpg\" alt=\"MSC Ship in China Myseatime\" /></a>\r\n\r\nMSC Domitille discharged 599 TEUs of cargo, or 300 containers of foodstuffs as well as agricultural commodities. The vessel operates on the New Falcon service, between Asia and the Middle East, with transit times of 21 days from Shanghai to Shahid Rajei.\r\nPort rotation: Xingang, Busan, Ningbo, Shanghai, Fuzhou, Chiwan, Tanjung Pelepas, Singapore, Colombo, Jebel Ali, Bandar Abbas, Ad Dammam, Jubail, Jebel Ali, Mundra, Nhava Sheva, Singapore, Nansha, Xingang.\r\n\r\nMSC’s president and CEO Diego Aponte was invited to Iran last year by the government for informal meetings with logistics partners to understand the trading landscape and prepare the ground for business operations in post-sanctions Iran.','MSC resumes vessel operations in Iran','','inherit','open','open','','1358-revision-v1','','','2016-01-07 17:52:57','2016-01-07 17:52:57','',1358,'http://myseatime.com/blogadm/1358-revision-v1/',0,'revision','',0,0);
