Cargo must pay either in y the form agreed freight or hire or by way of damages for any

breach of contract.
Two main categories:
• charter parties: contracts between a ship owner and a charter of a ship
• Bill of lading contracts: between a ship owner and a shipper who only requires a small
part the ship to carry his goods to the agreed destination. BoL evidences the
contracts of carriage.
Charter parties are commercial contracts, the market is very competitive and rates are
continuously changing.

Types of charter parties: voyage, time and demise charterparties depending on the
degree of responsibility and control assumed by the charter over the vessel 's
commercial and technological operations

Bill of lading contracts:

Buyers and sellers are usually from different countries therefore no one wants to pay
beforehand. The buyer arranges with the Bank to open a letter of credit in favor of the
seller who can draw on the letter of credit by shipping the goods and presenting the
requisite documents including the BoL required under the terms of LOC. Upon being
satisfied with the documents the buyers bank will release the funds to the seller.

Insurance off the Bill of lading:

Holders of Bol have given a measure of protection by international conventions that
impose minimum obligations on a carrier under contract of carriage covered by Bol. The
Hague Visby Rules establishes that carriers shall property and carefully load, handle, stow,
curry, keep, care for and discharge the goods carried.

,
 Cla 1

Bill of lading contracts aka “longer terms”

Legislation covered needed for class:

• carriage of goods by the sea 1971
• Uk COGS 1972 - Singapore COGS Act
• Bills of lading 1992 (BOL) 1855 for context
• Convention annexed to Singapore COGS acts - Hague Vigsby rules

What is a Bill of lading?

A Bill of lading documents that specified goods are shipped by a named person on an
identified ship at a particular place for carriage to a named destination and delivery
there to a named consigned or to his order/ to his assigns.

Also referred as the key to the warehouse, more likely a floating warehouse. In real life
when cargo arrives to the discharge port there is not a person collecting the cargo in
that situation the ship owner won’t give the goods to a person without the Bill of lading
therefore the captain will need to get in line again (costly and time consuming).

That only happens when there are legal issues when discharging the cargo. If you
discharge in Iraq is most likely that the cargo will be stolen. In other places where there
is no apparent danger usually a person is given a letter of indemnity to discharge the
cargo to shore an ID there is any claims made by the cargo owner the person that gave
the letter of indemnity is the one that will either respond of give money to the person
that that they LOI.

Charter party is when the whole ship is loaded by the cargo of the same person. In the
case the cargo need to be sold when arriving to the port bills of lading are issued to
Pietrini the cargo so it can be sell to different recipients (third parties)

Contract of affreighrment contract between shipper and the shipper:

A Contract of Affreightment (COA) is a legally binding contract between a shipowner

(carrier) and a charterer (the shipper). This contract certifies the goods or equipment
to be transported with its respective specifications such as weight and quantity, the
destination, and the timeframe for delivery.

Bailment on terms: Bailment represents the contractual transfer of property or assets

from a bailor, who relinquishes possession temporarily but not the ownership, to the
bailee. For bailment creation, a bailee must intend to possess, as well as possess the
bailable chattel physically. when there is no contract you can use the pioneer container
decision on extra contractual damages.
Hague Visby rules provides content to the BoL. Before the
convention was drafted it was all regulated by contract
excluding a million of things based on freedom of contract
leading to abuses therefore balance of power was
introduced by regulation. They established minimum
standards of care as well as defences to the cargo owner.
Prescription or time bar is of two years.

Us COGS 1924 (Hague Visby rules of the us)

Transfer BOL Singapore Bill of lading act

Case law decisions in Singapore:
• BNP v Bandung shipping SGHC 111
• Keppel tatlee v Bandung shipping SRL 295
• Sunlight mercantile v ever lucky SGCA 47
• feoso v faith maritime SGCA 34
• APL V Voss SGCA 41
• UCO bank v golden shore SGCA 42
• The Cherry and ors SGCA 49
• The jian he SRL 8
• The dolphina SRL 992.
• The start quest SRL 1280

Because Singapore geography as well as the main function as

oil providers or to recharge oil from vessels any dispute that
touched Singapore territory a claim can be brought to court.
That’s why Singapore has vast case law.

Bills of lading represents the cargo tons is interchangeable,

counts as securities as well as assurance of payment. The
bank
contracts
make a letter
of credit to
pay for the
goods, is a
promise of
pay, needing
to provide
certain
documents to
receive
payment.
When it is directed to one person is not a Bill of lading because
transferability is key.
 Incorporation rules that bounds
charter parties. We need to be
Shipper prepared for a law and arbitration
clause. Either London, Singapore,
consignees Hong Kong arbitration.
toordertransferable
notify
party There are legal rules in how should
no rights
contractual
you describe the goods, and how the
Carr tier is supposed to give a fair
description of the goods.

Written terms, printed terms,

signature, implied terms and
conventions plus the incorporation
of the charter party.

Carrier box has the contractual

carrier the issuer of the Bill of
lading. Can be signed by agents (by
written authorisation).

The effect of an Agency

Relationship is that the Principal
takes on the responsibility and
privileges of the contracts into
which the Ship Agent enters.
Therefore, the Ship Agent has no personal liability regarding the contracts entered into
on behalf of the Principal.

When the ship cargo is full of boxes that belong to different people there is no
incorporation clauses because is not charter.

Functions of the Bill of lading:

• Evidence of contract
• Being receipt the goods
• Document of title

SZE HAI TONG BANK LIMITED V RAMBLER CYCLE CO. LIMITED (SINGAPORE)
Because the BOL did not have the to order therefore was not transferable, the carrier
replaced the goods to another person not entitled to the goods breaching the contract.
The carrier stated that it was not a BOL therefore he was not breaching contract.
A P&I club is a mutual insurance association that provides risk pooling, information and
representation for its members. Unlike a marine insurance company, which reports to its
shareholders, a P&I club reports only to its members. In international shipping there are
12 clubs that insure the usual maritime liability but is off covered when a LOI is issued.
The LOI has a presumption of liability but can be contested.

The concept of three original BOL:

The captain issues differently original BoL weigh the same content once one is fulfilled the
others will be voided. Is standard practice that started hundred years ago, the BoL are
always expected to be issued in sets of three originals. With only one original you can
collect the goods, once collected the other originals become useless.

Pre and post carriage documents

Pre docs: Chief officer =second command is expected to have some knowledge of what
the staff has been carrying. This process takes tone and before the BoL a mate’s receipt
with the observations of the cargo sort of a pre BoL. Before shipping the cargo you
need to book the space of the containers you are going to ship this is called booking
notes.

Post docs: delivery order is the post BoL, the master examines the BoL and checks the
endorsement sometimes if needed a lawye will be consulted. When the BoL is determined as
legit the person will be given a DO to go to the warehouse to collect the goods and pass
through customs.

Pyrene v Scindia: the cargo was dropped and damaged and the question was whether it
was part of loading cargo activities because the cargo was not on the ship yet the BoL
had not been issued. The principle was that as long as the parties have contemplated the
issuance of a Bill of lading the cargo is protected.
Invitation to tear is pre contractual and the acceptance of the offer does not
equivalent as a contract.

Heskell v Continental express: another person received the goods but the goods were left
behind in the warehouse but issued a BoL. The principle is an agent us not authorised to
issue a BoL for goods that are not in the ship.

The Ardenes: the goods were promised to be shipped immediately without detour and
afterwards the BoL was issued with a deviation clause, this clause does not exonerate
the carrier for re breach of contract because the contract was made before, the pre
contractual terms apply to the terms of the Bill of lading contract. Therefore by making
detours af establishing not in the pre contractual terms there is a breach because it
was already agreed before Bill of lading while trying unilaterally to change the conditions.
No unilateral variations are allowed.