MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF FINANCE - MARKETING

FINAL ESSAY
TRANSPORTATION AND INSURANCE
FOR EXPORT – IMPORT GOODS

TP. HCM – THÁNG 12/2022

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF FINANCE - MARKETING

FINAL ESSAY
TRANSPORTATION AND INSURANCE FOR
EXPORT – IMPORT GOODS

STUDENT: Khổng Hoàng Thông – 2021000213

Nguyễn Hữu Thịnh - 2021001871
Nguyễn Thị Thắm - 2021002000
Nguyễn Thị Anh Thư - 2021001883
Hoàng Thị Diễm Quỳnh – 2021001881

Class: CLC_20DTM02

TP. HCM – THÁNG 12/2022

 Full name Assigned Contribution percentage

Khổng Hoàng Thông 1.1, 1.2, 2.1 22%

Nguyễn Hữu Thịnh 1.1, 1.2, 2.2 21%

Nguyễn Thị Thắm 1.1, 1.3, 2.1 20%

Nguyễn Thị Anh Thư 1.3, 2.1, 2.2 19%

Hoàng Thị Diễm Quỳnh 2.1, 2.2 and synthetic 18%

 QUESTIONS

Question 1: The actual process of issuing & circulating Master B/L and House
B/L.

Request:

1.1 Collect a set of actual Master B/L and House B/L with clear information and paste
it into MS Word.

1.2 Draw the release and flow diagram of this Master B/L and House B/L.

1.3 Explain the difference between House B/L and FIATA B/L.

Question 2: Describe the content of insurance conditions.

Request:

2.2 Presentation of risks covered under terms C, B, A of ICC (2009).

2.3 Presenting the difference between ICC (2009) and ICC (1982).
 CONTENTS

QUESTION 1. The actual process of issuing & circulating Master B/L and House
B/L. ............................................................................................................................. 1
1.1 Collect a set of actual Master B/L and House B/L with clear information and
paste it into MS Word. ............................................................................................. 1
1.2 Draw the release and flow diagram of this Master B/L and House B/L............... 4
1.3 Explain the difference between House B/L and FIATA B/L............................... 5
QUESTION 2. Describe the content of insurance conditions .................................. 6
2.1 Presentation of risks covered under terms C, B, A of ICC (2009) ....................... 6
2.2 Presenting the difference between ICC (2009) and ICC (1982). ......................... 8

LIST OF PICTURES

Picture Content Page

1.1 Master Bill 1
1.2 House 3
The release and flow
1.3 diagram of MB/L and 4
House HB/L

LIST OF TABLES

Table Content Page

The difference between
1.1 house B/L and FIATA 5
B/L
Risks covered under terms
2.1 6
C, B, A of ICC (2009).

LIST OF ACRONYMS

Word Meaning
B/L Bill of Lading
MB/L Master Bill of Lading
HB/L House Bill of Lading
ICC Institute cargo clauses
CO., LTD Company Limited
INC Incorporated
 QUESTION 1. THE ACTUAL PROCESS OF ISSUING & CIRCULATING
MASTER B/L AND HOUSE B/L.
1.1 COLLECT A SET OF ACTUAL MASTER B/L AND HOUSE B/L WITH
CLEAR INFORMATION AND PASTE IT INTO MS WORD

Picture 1.1 Master Bill

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Detail:

- QUOC VIET TRANSPORTATION & TRADING CO., LTD: POL Forwarder.

- MAT INCORPORATED: POD Forwarder.

- SITC CONTAINER LINER CO., LTD: Carrier and as Agent for Carrier.

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Picture 1.2 House B/L

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Detail:

- OKITA SHOJI VIETNAM COMPANY LIMITED: Exporter.

- THE KISS INC: Importer.

- QVTRANS CO., LTD (QUOC VIET TRANSPORTATION & TRADING CO.,

LTD): POL Forwarder.

- MAT INCORPORATED: POD Forwarder.

1.2 DRAW THE RELEASE AND FLOW DIAGRAM OF THIS MASTER B/L
AND HOUSE B/L

Picture 1.3 The release and flow diagram of MB/L and House HB/L

Steps:

Step 1: OKITA SHOJI VIETNAM COMPANY LIMITED delivers FCL to

QVTRANS CO., LTD and asks for the original B/L.

Step 2: QVTRANS CO., LTD issued to OKITA SHOJI VIETNAM COMPANY

LIMITED called House B/L as shipping evidence.

Step 3: QVTRANS CO., LTD delivery consignment to SITC CONTAINER LINER

CO., LTD.

Step 4: SITC CONTAINER LINER CO., LTD issued Master B/L to QVTRANS CO.,
LTD.

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Step 5: MAT INCORPORATED presents MB/L to SITC CONTAINER LINER CO.,
LTD to get Master Delivery Order (SITC CONTAINER LINER CO., LTD releases
the consignment).

Step 6: THE KISS INC presents HB/L to get House Delivery Order.

1.3 EXPLAIN THE DIFFERENCE BETWEEN HOUSE B/L AND FIATA B/L
Table 1.1 The difference between house B/L and FIATA B/L.

House B/L FIATA B/L

Freight Forwarder, who
Issued by Any Freight Forwarder. are the members of
FIATA.
Color Printed on white paper. Printed on blue paper.
FIATA logo is positioned
Logo Logo’s Frieght Forwarder.
in the middle of the FBL.
Multi modal transport Bill
Title Bill of Lading.
of Lading.
Documents can be
Documents can be
circulated and accepted by
Feature circulated but not accepted
banks for payment in
by banks for payment.
documentary credit mode.
Forwarder does the sole
Forwarder is the carrier
duty of a Forwarder and
and is liable to the owner
has no liability to the
Responsibility of the goods and such
owner and such
consignment on the main
consignment on the main
voyage.
voyage.
There is no convention
Governing Convention
governing the relationship
Based on Based on UNITAD/ICC
between the shipper and
Rules
the Forwarder.

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QUESTION 2. DESCRIBE THE CONTENT OF INSURANCE CONDITIONS
2.1 PRESENTATION OF RISKS COVERED UNDER TERMS C, B, A OF ICC
(2009)
2.1 Risks covered under terms C, B, A of ICC (2009).
C B
Risk
1. This insurance covers,
except as excluded by the
provisions of Clauses 4, 5,
6 and 7 below,
1.1 loss of or damage to the
subject-matter insured
reasonably attributable to
1.1.1 fire or explosion
1.1.2 vessel or craft being
stranded grounded sunk or
capsized
1.1.3 overturning or
derailment of land
conveyance
1.1.4 collision or contact of
vessel craft or conveyance
with any external object
other than water
1.1.5 discharge of cargo at a
port of distress,
1.2 loss of or damage to the
subject-matter insured
caused by
1.2.1 general average
sacrifice
1.2.2 jettison.
A
Risk Risk
1. This insurance covers, This insurance covers all
except as excluded by the risks of loss of or damage
provisions of Clauses 4, 5, to the subject-matter
6 and 7 below, insured except as
1.1 loss of or damage to excluded by the
the subject-matter insured provisions of Clauses 4,
reasonably attributable to 5, 6 and 7 below.
1.1.1 fire or explosion
1.1.2 vessel or craft being
stranded grounded sunk or
capsized
1.1.3 overturning or
derailment of land
conveyance
1.1.4 collision or contact
of vessel craft or
conveyance with any
external object other than
water
1.1.5 discharge of cargo at
a port of distress
1.1.6 earthquake volcanic
eruption or lightning,
1.2 loss of or damage to
the subject-matter insured
caused by
1.2.1 general average
sacrifice
1.2.2 jettison or washing
overboard
1.2.3 entry of sea lake or
river water into vessel
craft hold conveyance
container or place of
storage,
1.3 total loss of any
package lost overboard
or dropped whilst
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 loading on to, or
unloading from, vessel
or craft.
Exclusions
4. In no case shall this insurance cover
4.1 loss damage or expense attributable to wilful misconduct of the Assured
4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of
the subject-matter insured
4.3 loss damage or expense caused by insufficiency or unsuitability of packing or
preparation of the subjectmatter insured to withstand the ordinary incidents of the
insured transit where such packing or preparation is carried out by the Assured or their
employees or prior to the attachment of this insurance (for the purpose of these
Clauses "packing" shall be deemed to include stowage in a container and "employees"
shall not include independent contractors)
4.4 loss damage or expense caused by inherent vice or nature of the subject-matter
insured
4.5 loss damage or expense caused by delay, even though the delay be caused by a
risk insured against (except expenses payable under Clause 2 above)
4.6 loss damage or expense caused by insolvency or financial default of the owners
managers charterers or operators of the vessel where, at the time of loading of the
subject-matter insured on board the vessel, the Assured are aware, or in the ordinary
course of business should be aware, that such insolvency or financial default could
prevent the normal prosecution of the voyage This exclusion shall not apply where
the contract of insurance has been assigned to the party claiming hereunder who has
bought or agreed to buy the subject-matter insured in good faith under a binding
contract
4.7 deliberate damage to or deliberate destruction of the subject-matter insured or any
part thereof by the wrongful act of any person or persons
4.8 loss damage or expense directly or indirectly caused by or arising from the use of
any weapon or device employing atomic or nuclear fission and/or fusion or other like
reaction or radioactive force or matter.
5.
5.1 In no case shall this insurance cover loss damage or expense arising from
5.1.1 unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe
carriage of the subject-matter insured, where the Assured are privy to such
unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein
5.1.2 unfitness of container or conveyance for the safe carriage of the subject-matter
insured, where loading therein or thereon is carried out prior to attachment of this
insurance or by the Assured or their employees and they are privy to such unfitness at
the time of loading.
5.2 Exclusion
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 5.1.1 above shall not apply where the contract of insurance has been assigned to the
party claiming hereunder who has bought or agreed to buy the subject-matter insured
in good faith under a binding contract.
5.3 The Insurers waive any breach of the implied warranties of seaworthiness of the
ship and fitness of the ship to carry the subject-matter insured to destination.
6. In no case shall this insurance cover loss damage or expense caused by
6.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or
any hostile act by or against a belligerent power
6.2 capture seizure arrest restraint or detainment, and the consequences thereof or any
attempt thereat
6.3 derelict mines torpedoes bombs or other derelict weapons of war.
7. In no case shall this insurance cover loss damage or expense
7.1 caused by strikers, locked-out workmen, or persons taking part in labour
disturbances, riots or civil commotions
7.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions
7.3 caused by any act of terrorism being an act of any person acting on behalf of, or
in connection with, any organisation which carries out activities directed towards the
overthrowing or influencing, by force or violence, of any government whether or not
legally constituted
7.4 caused by any person acting from a political, ideological, or religious motive.

2.2 PRESENTING THE DIFFERENCE BETWEEN ICC (2009) AND ICC (1982).
- Insufficiency of Packing or Preparation (Clause 4.3) is extended in favor of the
insured. According to the 2009 edition, packing loss is excluded only if caused by the
insured himself or others. packaging. The change of this exclusion affects the case
where goods are purchased at FOB and CFR prices where insurance is made by the
buyer.

- Insolvency and Financial Default (Clause 4.6) has been revised for the better in favor
of the insured. The ICC 1982 provides for loss, damage or expense resulting from
insolvency or financial deprivation in the owner, the charterer, or the operator of the
ship. But in the 2009 version, the regulation only excludes the case where the insured is
aware or should be aware of his or her financial deprivation. However, if the goods are
sold or there is a guarantee from the buyer to buy the goods, losses are not excluded.
- Nuclear Fission and/or Fusion exclusions (Clause 4.8) are further elaborated by further
specifying the Institute Radioactive Contamination Exclusion Clause of 2002. Nuclear
reactions are even broader to include weapons and equipment used for war.
- Unseaworthiness and Unfitness exclusion (Clause 5) is extended in favor of the
insured. Coverage is excluded only when the Assured discloses the unseaworthiness of

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the vessel or barge. This clause 5 shall not apply in the case of goods committed to a
buyer.
- Terrorism (Clause 7): defined for the purpose of clarifying the meaning in clause 7.3
and adding clause 7.4
- The Transit clause (Clause 8) adjusts in favor of the insured. Adds clause 8.3 the
insurance will end when “the Assured or his employees decide to use any other means
of transport or container for the storage of goods in lieu of the usual way”. While in the
ICC 1982 it is stipulated that the goods must be delivered to the destination specified on
the insurance policy.
- The Change of Voyage clause (Clause 10): expanded by removing the phrase "held
covered". This means that when changing the place of delivery, in some cases, if
necessary, it is possible to change the insurance premium, but it is not certain to keep
the insurance premium and negotiate separately as stated in ICC 1982. In addition, there
is the addition of clause 10.2.

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 REFERENCES

1. Institute of London Underwriters (2009). Institute cargo clauses 2009.

2. Loan Nguyen (2021). Learning material Transport and Insurance for Import and
Export Cargo.