UNIVERSITY OF CAGAYN VALLEY

Tuguegarao City

COLLEGE OF MARITIME EDUCATION

Name of Student : CERIA, REIGN JULIUS C. Year/ Section: BSMT 3B NON

Name of Teacher : LOLIT B. CABALZA, Ph.D.
Course : Maritime Law
Topics : Chapter 5-9 (Bill of Lading, The Voyage, Voyage Charter, Contract
For The Use Of Ships and Time Charter)
Coverage : Midterms
Module : 04

OVERVIEW :

The Bill of Lading is one commercial document which is very important in the
transport of goods from one port to port. When the loading of cargo at the nominated
port is concluded, the next step to follow is the voyage of the ship. Under the bill of
lading, it is implied that the ship should proceed without unjustifiable deviation to the port
of destination.
Voyage charter contract differs from the time contract in terms of remuneration,
description of the ship, conditions for cargo, expenses for the transport of goods, etc. In
the contract for a time charter, the character hires the ship under a certain period of time
and has the opportunity to control the use of ship. Sometimes the charterer wants to hire
a vessel from the shipowner without the letter supplying the necessary equipment and
crew. This kind of chartering is different from the time and voyage charters because the
charterer leases the ship and becomes a temporary owner of the ship.

LEARNING OUTCOME:
1. To be able to analyze some situations in order to make decisions under
certain conditions as future seafarers.

LEARNING OBJECTIVES:
1. To define a bill of lading and identify its different types
2. To explain the meaning of deviation
3. To give the contents of a voyage charter contract
4. To distinguish a voyage charter party from a time charter party.

DESIRED ACTIVITY:
After reading Chapters 5-9, be able to do the following.
A. Answer the following questions: Use a separate sheet for your answers
1. What is a Bill of Lading?
 A bill of lading is a document signed and issued by a
shipowner/carrier or his agent acknowledging that goods have been
received for shipment of shipped on board a particular vessel, which is
bound for a particular destination on which the goods are to be carried.
In most cases, bill of lading is signed and issued by the ship’s captain.
The bill of lading is the receipt for the goods stating the terms on which
they are to be carried.
2. What are the functions of the Bill of Lading?
 A bill of lading must be transferable, and serves three main function: it
is a conclusive receipt, an acknowledgement that the goods have
been loaded and it contains or evidences the terms of the contract of
carriage and it serves as a document of title to the goods, subject to
the nemo dat rule.
3. What is the difference between reasonable deviation and unreasonable
deviation?
 “Any deviation in saving or attempting to save life or property at sea or
any reasonable deviation shall not be deemed to be an infringement or
breach of these Rules or of the contract of carriage, and the Garner
shall not be liable for any loss or damage resulting there from.”
 The emphasis on the word “reasonable” is significant. Such a
deviation would not cause any reasonably minded cargo owner or
shipowner to raise any objection. An unreasonable deviation would
be in breach of the Rules and the carrier would lose the exceptions
from liability in Art. IV, r. 2 (1). In the Hamburg Rules, Art. 5, r. 6
provides somewhat more restrictively, that: “The carrier is not liable,
except in general average, where loss, damage or delay in delivery
results from measures to save life or from reasonable measures to
save property at sea.”
4. Differentiate voyage charter party and time charter party as to characteristics.
 The voyage charter party is a document or contract between the
shipowner and charterer containing the terms and conditions for the
use of ship’s cargo space for one or more than one voyage. It is the
charterer’s obligation to provide the agreed cargo and pay the freight
that is calculated according to the quantity of cargo carried.
 The Time Charter Party is a document containing the terms and
conditions of the agreements made by the shipowner and charterer for
the use of the ship for a period. A shipowner undertakes services for a
specific period; remuneration of which is called “hire.” This
 remuneration is calculated, based on time and not on quantity of cargo
carried.

B. Case Analysis: Analyze the situations below and give your answers to the
questions.
1. The vessel is supposed to arrive at the Port of Valetta in Malta before 0800H
Monday, 29th of March 2019. The cancelling date is 15 March/ 25 March. The
ship did not arrive on the cancelling and the charterer has to consider and
immediate step to be undertaken. What is supposed to be the next step of the
charter? Explain your answer.
 If the ship fails to arrive on the cancellation date. In this situation, the
charterer has two options. He can cancel the charter/contract and also
claim the loss's damages.

Thank you.

Prepared by:

LOLIAT B. CABALZA, Ph.D.

Instructor