Ship'smaster Business Q & A

THE SHIPMASTER’S BUSINESS
NOP
Q: What is a protest?
A solemn declaration made by a shipmaster under oath before a notary public or other officer having
authority to administer oaths, that loss, damage or delay to the ship or its cargo have been caused by
circumstances beyond his control.
Q: In what circumstances should a shipmaster note protest?

(1) After every case of general average;
(2) After wind and/or sea conditions have been encountered which may have damaged cargo;
(3) After wind and/or sea conditions have been encountered which caused failure to make a
cancelling date;
(4) After cargo is shipped in a condition likely to deteriorate during the voyage (also, bills of lading
should be appropriately claused after consultation with the shipper and P&I correspondent);
(5) After the ship has been damaged from any cause;
(6) After a serious breach of the charterparty by the charterer or his agent (e.g. undue delay; refusal
to load; refusal to pay demurrage; refusal to accept bills of lading after signing because of clausing
by master; sending vessel to an unsafe port, etc.);
(7) After the consignee fails to discharge or take delivery of the cargo or fails to pay freight, and
similar situations.
Q: When should a shipmaster note protest following a heavy weather voyage or following an
incident at sea?
Generally, as soon as possible ( and always within 24 hrs ) after arrival in port, and where there may
be cargo damage, before breaking bulk (commencing discharge from relevant hold or tank).
Q: How should a shipmaster go about noting protest?

He should;
(1) Go to a notary public or other person authorized under local law to take statements on oath;
(2) Be accompanied by one or more witnesses from the crew who have knowledge of the facts (who
should be prepared to be questioned);
(3) Have with him the Official Log Book, the deck log (or engine room log if relevant) and all other
relevant information surrounding the event being protested (e.g. cargo ventilation or temperature
records where there has been a cargo fire);
(4) Make a sworn statement before the notary, who will enter it in a register of Protests;
(5) Purchase at least 3 certified copies of the protest (for the owners, average adjuster and ship's file);
(6) Pay the notarial fee and obtain a receipt.
Q: What is “Reserve the right to extend the protest at the time and place convenient” ?
It may be impossible to know the full extent of damage when first noting protest, and further facts
may have to be added to the original protest. Therefore it is important to include the clause “ Master
may reserve the right to extend the protest” during noting protest.
CMNA MASTER (CLASS – 1) Page - 1

LOP
What is a Letter of Protest?
• A written communication recording dissatisfaction on the part of one party concerning any
operational matter over which the recipient or other party has control and holding the other party
responsible for any consequences of the matter being complained about.
• Most commonly a protest is in connection with cargo, although one may be written about almost
any matter.
• It may help to substantiate a claim by owners (or refute a claim by charterers, a harbor authority
etc.). and may prove useful if properly filed when a dispute is being resolved long after the related
event.
• A Letter of Protest should not to be confused with a protest (or sea protest) noted or lodged with
a notary public or consul.
Q: In what circumstances would it be appropriate for a master to issue a letter of protest?

(1) When cargo is being loaded too fast or too slowly
(2) When stevedores are damaging the ship or mishandling ship's equipment;
(3) When the cargo specification is wrong;
(4) When there is discrepancy between the ship's and shore cargo figures;
(5) When the berth or fendering arrangements are inadequate;
(6) When dock workers are misusing ship's equipment and are ignoring duty officers advice or are
urinating in cargo spaces;
(7) When passing vessels cause ranging wash damage etc. whilst loading/discharging;
(8) When it is impossible to disembark passengers due to a quayside obstruction;
(9) In any other situation where the master wishes to formally record his dissatisfaction with or
disapproval of arrangements over which the other party has some control.
Q: In what circumstances might a shipmaster receive a Letter of Protest?

(1) When the discharged cargo quantity does not match the bill of lading quantity;
(2) When the ship is alleged to be discharged too slowly;
(3) When the specification, colour, temperature, etc. of discharged cargo is "wrong";
(4) When making smoke in port;
(5) When the ship is alleged to have caused damage to a quay, another ship or other property.
Q: What should a master do with a letter of protest given to him by other party?
(1) Sign it “ for receipt only” (2) return the original to the sender, (3) file the received letter in the
cargo file or “protest received” file.

Q: Difference between NOP & LOP
NOP LOP
solemn declaration written communication recording

dissatisfaction on the part of one party
Sworn statement Not sworn statement
Matter over which no party control Matter over which recipient or other party has
control
Stated that loss, damage or delay to the ship or Stated that holding the other party responsible
its cargo have been caused by circumstances for any consequences of the matter being
beyond his control complained about
made by a shipmaster made by a authorized person
To a notary public or other officer having To person having control of the matter being
authority to administer oaths protested
Supporting documents are required Supporting documents not required
Signature of witness may be required Signature of witness not required
Signature of recipient is not required Signature of recipient is required
Should be made as soon as possible within 24 Should be made as soon as possible after the
hours after arrival in port or before breaking event has occurred
bulk
made Issue or receive
LOI
Q: What is Letter of Indemnity (back letter)?

• The letter of Indemnity is a letter of guarantee by shipper that in case any cargo claims as a result
of issuing clean B.L, the shipper will indemnify the carrier for such claims.
• Letter of Indemnity has no legal value;
• It is binding in honor only;
• Issuing clean B/L without inserting qualifying clause as required may be considered as an
accomplice in fraud and the owners' P&I club would not cover any claim arising in connection
with the matter;
• Therefore, on no account would the master issue clean B.L in return for LOI.

Q: What is Acceptable LOI?
• It is acceptable to the owners' P&I club and countersigned by a first class bank or cargo insurance
underwriter;
• The P & I club will always give cover for claims arising under such LOIs. Some clubs print their
standard LoI wording in the club rulebook, which should be on board.
Q: In what circumstances might a letter of indemnity be offered to the ship or carrier in

connection with bill of lading?
(1) Against issue of a “clean” bill of lading when cargo is shipped that is not in “apparent good
order and condition”
(2) when goods are being claimed at the discharging port without original Bill of Lading
(3) When the port where delivery is required is not the same as the port of discharge shown on
the Bill of lading.
(4) Where there is a combination of (2) &(3)
Q: In what circumstances, should an offered letter of indemnity never be accepted?

Against issue of a “clean” bill of lading when cargo is shipped that is not in “apparent good order
and condition”
To accept the letter of indemnity in that case could amount to a fraud(a criminal case).
Q: Who will give LOI at loading port?

Shipper
Q: Who will give LOI at discharging port?

Cargo owner (consignee)
MARINE LOSSES
Q; What are Marine Losses?
1. Total Losses (a) Actual total losses (b) Constructed total losses
2. Partial Losses (a) Particular Average (b) General Average
Q: What are Actual total losses?
When the subject matter is destroyed or damaged so that it ceases to be the thing insured or permanently
deprived. Example; (1). When a ship or cargo is destroyed by fire (2). When a ship and cargo is sunk in
deep water that it would be impossible to recover.
A total loss may be presumed when a ship disappears and no news is received within a reasonable time. If
the ship concerned is a ‘missing ship’, there is presumed to be an actual total loss because the
assured is irretrievably deprived of his or her ship. (Q: What are presumed total losses?)

Q; What are Constructed total losses?
When the subject matter is reasonable abandoned because actual total loss is un-avoidable or if so
damaged that expenses (such as costs to repair the subject matter) will exceed the value of the property.
Example (1) Ship so damaged that cost of repair will exceed the value of repaired vessel (2) a ship was
ashore in a position from which it would be difficult to refloat her without great expense (3) Ship trapped
in a war situation.
Q; What is Particular Average (P.A)?
Particular Average is defined fortuitous partial loss caused by peril insured against. It is accidental
partial loss of insured property.
PA contribution by a particular insurer. Eg; damaged to the ship’s hull. The costs are claimed o hull and
insurance policy.
Examples
1. Grounding/Stranding damage
2.Fire & Explosion damage
3.Heavy weather damage
4.Collision damage
5. contact damage (with fixed or floating objects)
Q: What is General Average (G.A)?
General Average is Partial loss intentionally sacrificed for common adventure in extraordinary
circumstances. It is performed with intention of protecting all the interests involved in the voyage from a
danger which threaten them all.
GA contribution by all parties.
Examples
1.Beaching to prevent sinking
2.Extinguishing a fire damage to other cargo
3.Jettisoning cargo caused by peril
4.Salvage costs
Q; What are the differences between General Average and Particular Average?
Particular Average (P.A) General Average (G.A)
Partial loss Accidentally caused by peril Partial loss intentionally sacrificed for common
adventure in extraordinary circumstances.
PA contribution by a particular insurer. GA contribution by all parties.
Examples Examples
1. Grounding/Stranding damage 1. Beaching to prevent sinking

2. Fire & Explosion damage 2. Extinguishing a fire damage to other cargo
3. Heavy weather damage 3. Jettisoning cargo caused by peril
4. Collision damage 4. Salvage costs

Q; What are York-Antwerp Rules?
The York-Antwerp Rules are Internationally recognized rules which regulate the adjustment of general
average. York-Antwerp Rules are applied on a contractual basis. Consist of 7 lettered rules (A to G)
stating the general principles of GA and 22 numbered rules (I to XXII) dealing with detailed settlement of
GA.
Q; Under the York-Antwerp Rules, what are the necessary elements for a sacrifice or expenditure to
qualify as a general average act?
1. The sacrifice or expenditure must be extraordinary.

2. The sacrifice or expenditure must be reasonable.
3. The act must be intentional or voluntary.
4. There must be a peril.
5. The action taken must be for the common safety and not for the safety of part of the property involved.
Q; What is meant by “ extraordinary sacrifice or expenditure?

Ordinary losses and expenses incurred by a ship owner in running his ship and carrying cargoes are not
allowed in general average. For example damage done in overworking a ship’s engines while afloat, trying
to prevent grounding, whereas damage to engines overworked when aground, in attempting to refloat,
would qualify in general average, since this is an extraordinary act.
Q; What is meant by “ reasonable sacrifice or expenditure?

The sacrifice or expenditure must be reasonable. Jettisoning enough, but no more, of deck cargo of timber
to refloat a grounded ship would be reasonable. Jettisoning entire deck cargo would not be reasonable.
Q; What is meant by “ intentional or voluntary act” ?

Beaching a leaking ship to prevent foundering will be allowed as general average, as this is intentional or
voluntary. (Cost of repair to the damage causing leak is particular average)
Q; What is meant by “peril in general average” ?

A danger. The peril must be real and substantial, but it need not be imminent. A ship drifting without
engine power in mid ocean. Cost of tow to place of safety would qualify in G.A. Master of sound ship
decides to run for shelter to avoid storm. This measure is precaution of prudent master and not qualify as
G.A
Q: What is meant by "action for the common safety"?
• The action to avoid a loss due to a peril which endangers the interests of all parties on that voyage is “
Action for common safety”.
• If the whole adventure is in danger, the action for common safety will be GA.
• Action to avoid a loss that threaten one or more interest but not all will not be GA.
• Example; Reefer machinery broke down on reefer ship at sea and vessel divert to port for repairs, the threat
is to cargo only (the whole adventure is not in danger) This is not GA.
When the cargo hold is on fire and the ship divert to port of refuge, as the peril threatens the interest of all
parties (the whole adventure is in danger) This is GA.

Q; What actions might qualified as GA acts?
1. Taking a tow to a port of refuge after a major machinery failure.
2. Jettisoning or discharging cargo to aid refloating after stranding
3. Extinguishing a fire.
4. Wetting previously undamaged cargo while extinguishing a fire.
5. Beaching a ship to avoid foundering.
6. Putting into a port of refuge during a loaded voyage due to fire, shifting of cargo, collision, grounding,
leakage, etc.
7. Putting into a port of refuge to effect essential hull or machinery repairs
Q; What sacrifices might qualify as G.A sacrifices?
1. Damaging engine, propeller or hull in refloating operations.

2. Jettison of cargo from under deck.
3. Jettison of cargo carried on deck by a recognized custom of trade.
4. Slipping an anchor and cable to avoid a collision.
Q; What expenditure might qualify as G.A expenditure?

1. Cost of hiring a tug to refloat a stranded ship with cargo on board.
2. Cost of discharging cargo to refloat a stranded ship or to carry out repairs at port of refuge.
3. Salvage costs.
4. Agency fees at a POR.
5. Surveyors’ fee.
6. Warehousing charges.
7. Port charges
8. Master’s and crew wages while a ship is being repaired.
9. Average adjuster’s fee.
Q; Notice of abandonment is required in which total loss ( Actual total loss or Constructed total loss)?
Constructed total losses
Q; Your ship is Grounding and hull damaged, cargo is onboard. Is this GA?
No. General Average is Partial loss intentionally sacrificed for common adventure in extraordinary
circumstances.
MARINE INSURANCE
Marine Insurance is a contract agreement where the insurer agrees to indemnify the assured against losses
in a marine adventure ( a voyage, when ship, cargo, etc are exposed to maritime perils)
Three principles of insurance

(1) Indemnity
(2) Insurable interest
(3) Utmost good faith

(1) Indemnity
 To indemnify is to make good a loss suffered, not by replacement of the subject matter lost, but by a
financial payment, i.e. to compensate.
(2) Insurable interest
 Before anyone may legally enter into a marine insurance contract he must have an insurable interest
in the property at risk.
 Essential features of insurable interest are:
 the subject matter insured must be a physical object exposed to peril; and
 any assured must have some legal relationship to the subject matter insured, and must stand to
benefit by its preservation or lose by its loss or damage.
 The insurable interest of an assured is limited to the amount of actual loss.
 Simplest form of insurable interest is ownership of the subject matter insured.
(3) Utmost good faith
 Utmost good faith is basically honesty in declaring the facts about the subject matter to be insured.
The assured must declare to the insurer, before the contract is made, every material fact known to the
assured.
Example of utmost good faith
• It would be dishonest for a ship owner not to disclose that his 25-year old vessel had just failed
her 5th special survey.
• If the assured fails to make such disclosure, the insurer may void the contract.
Sister ship Clause (Marine Insurance)
 Vessel owned wholly or partly by the same owners, or under the same management, to be treated in
the event of collision or salvage as if they were owned by different companies.
 In such cases liability is to be referred to a mutually agreed sole arbitrator.
Tender Clause
 In case of accident which can give rise to the claim, notice must be served to the underwriter or nearest
Lloyd's agent.
 Underwriter has right to select port of refuge, to appoint surveyor, to select repairer, to call tender or
to let the assured do the same.
 Any additional expenses incurred by assured in following underwriter's order shall be paid by
underwriter.
 If the assured fails to comply with the clause, a deduction of 15% will be made from the claim amount.

Running Down Clause (Marine Insurance)
 If the insured vessel collides with another vessel, the underwriter agrees to pay 3/4th of the assured's
liability in damage to other ship, with the maximum limit of three quarters of the sum insured.
 The remaining 1/4th of liability is usually insured under ship owner's P & I club policy.
 RDC protection covers:
 Loss or damage to another vessel;
 Delay or loss of use of another vessel;
 General average; and
 Salvage of another vessel.
 RDC protection does not extend to:
 Removal of wreck;
 Damage to piers;
 Oil pollution;
 Loss of life; and
 Personal injury.
Franchise Clause (Marine Insurance)
 A franchise is that portion of the insured value of the subject matter insured for which the underwriter
is not liable.
 There are two kinds of franchise:

(1) Deductible franchise and
(2) Non-deductible franchise.
(1) Deductible Franchise (JANSEN Clause)
 If the claim amount does not exceed the franchise amount, it is not payable by the insurer and the
assured has to bear it.
 If the claim amount exceeds the franchise amount, the insurer will pay that part of the claim which
exceeds the franchise amount.
(2) Non-deductible Franchise
 If the claim amount does not exceed the franchise amount, it is not payable by the insurer and the
assured has to bear it.
 If the claim amount exceeds the franchise amount, the claim is payable in full by the insurer.
P & I Clubs (Mutual Insurance)
 To secure cover against third party risks which are normally outside the scope of an ordinary marine
policy, groups of ship owners form what are known as Protection and Indemnity Associations,
sometimes referred to as P & I clubs or Small Damage Clubs;

 Protection relates to liabilities incurred by the employment of the ship as a ship;
 Risks under Protection include:
(1) Loss of life and personal injury claims;
(2) Hospital, medical and funeral expenses arising from injury claims;
(3) Sickness and repatriation of distress seamen;
(4) 3rd party collision damages not covered by RDC;
(5) Cargo damage due to improper navigation;
(6) Damage to piers, wharves and other stationary objects;
(7) Cost of DOT enquiries;
(8) Cost of raising wreck;
(9) Oil pollution;
(10) Quarantine expenses;
(11) Legal costs of defending claims if incurred with the consent of the Club directors;
(12) Cargo's irrecoverable proportion of G.A.
 Indemnity relates to liabilities incurred by the employment of the ship as a carrier of cargo;
 Risks under Indemnity include:
(1) Claims in respect of wrong delivery of cargo;
(2) Ship's liability to cargo after collision not covered by insurance;
(3) Fines due innocent breaches of customs, health and immigration laws or arising from barratrous
acts including smuggling;
(4) Cost of resisting cargo claims with the consent of the Club directors.
 Certificates issued by P & I

(1) Certificate of entry
(2) Bunker Certificates (All ships 1000 GT and above, connection with pollution damages caused by
bunker oil from ships)
(3) CLC certificates (All tankers transporting 2,000 tons or more, connection with oil pollution
damages from ships)
(4) Wreck Removal Certificate (financial security in respect of shipowner liability for the of removal
wrecks)
(5) Athens Certificate (covering liability in the event of accidents transportation of passengers at
sea)
(6) MLC Certificate of insurance or other financial security in respect of seafarer repatriation costs
and liability [Reg-2.5]
(7) MLC Certificate of insurance or other financial security in respect of shipowners’ liability [Reg-
4.2]
LIEN
Q: What is lien?
A legal right to retain possession of the property of another as security for an outstanding
payment.
Q: What are the chief types of lien of interest to shipmasters?

Possessory lien; Maritime Lien; A lien of either type may be Common law lien (may arise by
common law); Statutory lien (by a piece of legislation) or Contractual lien (by a term in a
contract)
Possessory lien can be divided into:

(a) Particular lien and (b) General lien.
Maritime liens are of two classes, namely:
(1) contractual liens and
(2) damage liens.
Q: What is possessory lien?

The right a person in lawful possession of property of another to retain possession of the
property as security for a claim against its owner.
Q: What is a particular lien?

A right to retain possession only of that property of a debtor which are relates to the payment
due.
For example; a liferaft service station’s particular lien would enable it to retain possession only
of the life raft on which a payment is due.
In a contract for the carriage of goods by sea, the shipowner has a possessory lien on the cargo
for:
(1) unpaid freight;
(2) general average charges; &
(3) money spent in protecting the cargo.
Q: What is a general lien?

A right to retain possession of all property of a debtor in the lien-holder’s possession, for all
payments due by debtor.
For example; a motor mechanic’s general lien will enable him to retain possession of items of
personal property of vehicle owner which are in the vehicle worked on.
Q: What is a maritime lien?

A privileged claim on the property (usually a ship) which arises with a maritime claim in
respect of some service performed to ship (such as unpaid repair bills ) or some injury/damage
caused by ship(such as pollution). It can be enforced by the arrest and sale of the property,
regardless of the changes of the ownership, renaming, etc.
• Maritime lien exists so long as the property (such as a ship) exists.
• Maritime liens are of two classes, namely:
(1) contractual liens and
(2) damage liens.
Q: What is a contractual lien?

• a contractual lien is one incorporated by a term in the contract such as:
(1) bottomry
(2) respondentia
(3) salvage
(4) seamen's wages
(5) master's wages
(6) master's claim for disbursements
(7) fault in grounding in which coasts have been polluted
(8) payment for services provided by repairer, bunker supplier, harbour authority etc.

Q: What is a damage lien?
• damage lien is a maritime lien that arises mainly out of collision damage but:
(1) damage must be done by the ship (not by the crew)
(2) it must be in support of personal action
(3) wrongful act or the neglect of the owner or his servant must be proved
SALVAGE
Q: What is salvage?
Salvage is defined as the saving of maritime property in danger, where the saving is voluntarily
by persons (independent of contract). Marine property for salvage purpose is defined as vessels,
equipment, cargo, freight and wreck.
Q: what are the elements of salvage?
(1) the risk to the salvor,

(2) the value of the salvaged property,
(3) the risk involved in the salvage operation, and
(4) the degree of success of the salvage operation.
Q: what are the common principles to become salvage? (PSS)

(1) property must be in peril,
(2) service must be rendered voluntarily,
(3) salvage must be successful in whole or in part
Q: What is LOF?
Lloyd’s Open Form is the Lloyd’s standard form of salvage agreement between the parties.
(1). Contract is based on “no cure, no pay” principle.

(2). It can be agreed by radio.
(3). No need to negotiate the service terms, they are fixed.
(4). Reward is determined by Lloyd’s arbitrators after the service.
(5). The salvor is entitled to security following the salvage service
(6). Contract is governed by English Law.
Q: What is SCOPIC?
SCOPIC Clause is the special compensation P & I Clause, a supplementary clause to LOF
agreement that provides for an alternative method of assessing special compensation to the method
prescribed by International Salvage Convention.

Q: What is special compensation?
 Salvor have obligation to take all reasonable measures to avert and or minimize damage to
the environment in the salvage operation.
 The expenses to take all reasonable measures to avert and or minimize damage to the
environment is salvor’s expenses reasonably incurred in the salvage operation. It is special
compensation.
Q: Why SCOPIC clause was developed?
 When a vessel being saved will become a total loss and the salvors have failed to earn a
reward, a special compensation payment is payable by ship’s owner.
 The Arbitrators will fix the payment and difficulties were experienced in several salvage cases
in assessing the amount of special compensation under article 14 of the International
Salvage Convention.
 An alternative means of assessing special compensation remuneration, known as the Special
Compensation P&I Clause or “Scopic Clause”, was therefore developed by salvors, P&I
Clubs, underwriters and other parties.
Q: Is SCOPIC clause mandatory?

No, there is a method of assessing special compensation under article 14 of the International
Salvage Convention. As an alternative mean, SCOPIC clause was developed by salvors, P&I
Clubs, underwriters and other parties.
Q: Considerations before accepting salvage assistance
(1) safety of personnel

(2) proximity to shore or shoal water
(3) weather and sea conditions
(4) current and tide
(5) nature of seabed and shoreline
(6) potential for safe anchoring
(7) availability of assistance
(8) damage already sustained by ship
(9) risk of further damage to ship
(10) prospect of maintaining communication
(11) threat of pollution and
(12) manpower and material requirements

Q: Differences between Salvage & Towage?
SALVAGE TOWAGE
1. Salvage operation means any act or activity Towage is any operation in connection with
undertaken to assist a vessel or any other the holding, pushing, pulling, moving,
property in danger in navigable waters or in escorting or guiding of or standing by the
Hirer's vessel.
any other waters whatsoever, whereas
2. For salvage, the property must be in

For towage, the property need not be in
danger, whereas danger.
3. Salvage is a voluntary service, whereas Towage is a contemplated service.
4. Salvage is independent of contract,

whereas Towage is a previously arranged contract.
Towage is charged at fixed rate.

5. Salvage reward is open, whereas
Towage remuneration is payable by ship

6. Salvage reward is contributed by salved
owner.
property owners, whereas
7. Special compensation in salvage, whereas No special compensation in towage.
8. Salvage is based on no cure no pay Towage is in accordance with the contract

principle, whereas terms.
9. Salvage is saving of maritime property, Towage is safety of ship operation.

whereas

Q: Considerations before offering salvage assistance
(1) whether the contract of carriage gives the vessel liberty to tow;
(2) the duration of the towing voyage;
(3) sufficient bunkers and/or fresh water on board;
(4) possibility of missing a cancelling date under the charter party;
(5) the effect of delay on cargo;
(6) condition and power of the vessel's machinery;
(7) the value of the requesting vessel;
(8) risks involved;
(9) available gear;
(10) weather condition.
POR
Q: What is a port of refuge?
A port that a ship is diverted to when the master considers it unsafe to continue the voyage due to
a peril that threatens the common safety, e.g. when there is a dangerous ingress of water into the
ship' there is a dangerous shift of cargo; the ship adopts an angle of loll; there is a serious fire on
board; etc.
Q: Serious fire was on your vessel, Main Engine break down, most of cargo were damaged.
Your vessel is in deep sea. What is your action? Whom will you notify?
This condition is unsafe to continue the voyage due to a peril that threatens the common safety. I
make decision that ship is necessary to divert the intermediate port as a Port of refuge. I have to
follow the POR procedures.
Q; Describe Port of refuge and procedures?

1. Inform owners/charterers of decision to make a POR. Give reasons and relevant details.
2. Request owners to nominate an agent at the POR.
3. Call appointed agent as soon as known.
4. Pass ETA and information necessary for making preparations for vessel's arrival.
5. Request agent to notify:
❖ Port State Administration
❖ Port Authorities
❖ Local P & I club correspondent;
6. On arrival at the port, inform owners/charterers of vessel's safe arrival.
7. If the vessel arrived under salvage contract, owners and cargo owners should arrange salvage
security.
8. Owners normally will declare G.A.
9. Note protest as soon as possible but within 24 Hrs, reserving right to extend at time and place
convenient.

10. Send accident report to Flag Stage Administration.
11. In case of hull or machinery damage, owners will notify their underwriters.
12. Arrange for damage survey by classification surveyor;
13. Inform underwriter surveyor to attend the damage survey.
14. If cargo discharge in necessary for repairs,
❖ Call a hatch survey before breaking bulk;
❖ Inform surveyor recommended by P & I club correspondent;
❖ Notify cargo interests so that they can appoint their own surveyors;
❖ Average adjuster may be present;
❖ Be guided by the P & I club correspondent to protect the owner's interests.
15. Arrange cargo discharge under survey, either transshipment or warehousing of cargo.
16. If cargo owners are taking delivery of their consignments, General Average Bonds and
Guarantee Forms will first have to be signed.
17. On receipt of class surveyor's report concerning hull or machinery damage, owner will
advertise for tenders according to notice of claim and tender clause.
18. Tenders should only be accepted with guidance from underwriter surveyor.
19. Carry out repairs under class and underwriter surveyors' guidance.
20. On completion of repairs, arrange survey and obtain Interim Certificate of Class' or at least
Certificate of Seaworthiness'.
21. Reload cargo under survey if voyage being continued.
22. Extend protest giving full details of the damage and repairs; Obtain copies for owners.
23. Port agent will pay repairers; Let Average Adjuster and underwriter surveyor see the accounts
before paying.
24. Send all appropriate documents to owners.
25. Clear outwards and continue voyage.
26. All details entered in OLB.
Q: What is a place of refuge?
A place where a ship in need of assistance can take action to enable it to stabilize its conditions
and reduce the hazards to navigation, and to protect the human life and environment. It is for
example, a sheltered coastal place to which a ship which has suffered a structural failure may
be escorted to by a salvor in order for a salvage and pollution control operation to take place
in relatively calm conditions. IMO is urging coastal states to designate places of refuge on their
coasts.
Q: Under what circumstances should a shipmaster decide to divert for a port of refuge?
When it becomes unsafe to continue the voyage for any reasons;
1. Weather, collision or grounding damage affecting seaworthiness of the ship
2. Serious Fire
3. Dangerous shift of cargo
4. Serious machinery breaks down
5. Any other accident causing same serious threat to the vessel and cargo
6. Shortage of bunkers due to exceptionally serve weather, contaminations etc.

Q: How would you determine that a 'port of refuge' was satisfactory for your vessel?
The following conditions are needed to consider to determine that POR is satisfactory.
(1) Size of the port
(2) available depth of water and the respective underkeel clearance
(3) shelter place
(4) repair facilities
(5) facilities to discharge cargo if needed
(6) safe port or not
(7) availability for FW, fuel, crew change, surveyor, underwriter
CARRIAGE OF GOODS BY SEA ACT
What is Carriage Of Goods by Sea Act (COGSA)?
Carriage Of Goods by Sea Act is the law enacted by a state, incorporating one or other of the
three sets of internationally agreed rules, i.e. the Hague Rules, the Hague-Visby Rules, and the
Hamburg Rules.
Which rules under COGSA?

the Hague Rules, the Hague-Visby Rules, and the Hamburg Rules.
What are Hague Rules, the Hague-Visby Rules, and the Hamburg Rules?
Internationally agreed rules that define the basic contractual obligations, rights, liabilities and
immunities of sea carriers cargo shippers where Bill of lading or sea waybill is issued.
Myanmar signed which COGSA rules?

The Hague Visby Rules.
What is the difference between Hague – Visby/ Hague Rules Hamburg Rules? (For Carrier
Aspect)
• Liable from accepts at loading port until delivers them at discharge port
(under the other rules the carrier is liable from “tackle to tackle”.)
• Liable for loss, damage or delay occurring whilst in his charge unless he proves that “he, his
servants or agents took all measures reasonably.”
• Do not give carrier so many exceptions from liability. (Particularly, from liability arising from
negligence in navigation or management of ship)
• The Hamburg Rules govern both inward and outward B/L, whereas other only outward B/L
• Cover live animals, but carrier is not liable for loss, damage or delay resulting from any special
risks
• Can only carry cargo on deck if customary or agreement with shipper. If such agreement exists,
carrier must inset on B/L
• Carried on deck without customary or agreement with the shipper, the carrier is liable for loss,
damage or delay.

What are the carrier's three basic obligations under the Hague-Visby Rules?
1) To ensure the vessel's seaworthiness as far as reasonably possible;

2) to look after the cargo; and
3) to issue a bill of lading if the shipper wants one.
Where the Hague-Visby Rules apply, what are the carrier's obligations in respect of seaworthiness?
The carrier must, before and at the beginning of the voyage (ie up to the moment of sailing), exercise due
diligence to:
1) make the ship seaworthy;
2) properly man, equip and supply the ship; and
3) make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried,
fit and safe for their reception, carriage and preservation. (these requirements cover the three aspects of
seaworthiness: technical seaworthiness; cargoworthiness; and fittedness for the voyage.) The vessel must
be seaworthy only at the start of the voyage, which usually means when she leaves the berth, whether
under her won power or with the aid of tugs.
What does "exercise due diligence" mean?
Taking all reasonable precautions to see that the vessel is fit for the voyage contemplated. It could be argued
that a shipowner who fails to check the qualifications of his ships' officers fails to exercise due diligence.
The carrier is not obliged to give an absolute guarantee of seaworthiness. The carrier may delegate his duty
to exercise of due diligence (eg to surveyors or repairers), but he will be responsible if they fail to exercise
due diligence in carrying out their work.
What are the various aspects of seaworthiness in carriage of goods law?
Seaworthiness has three legal aspects:

(1). Technical seaworthiness relating to the vessel’s design, condition of her hull and machinery, and her
stability, etc;
(2). Cargo worthiness relating to suitability for the intended cargo and the condition of her cargo spaces
(3). Voyage worthiness relating to her equipment (including charts), safe manning, bunkering and stores for
intended voyage. If a claim of alleged unseaworthiness is to be successfully defended by carrier, charts must
be available and corrected up to date, crew must be properly qualified, etc.
Where the Hague-Visby Rules apply, what are the carrier's obligations regarding looking after the
cargo?
The carrier must "properly and carefully load, handle, stow, carry, keep, car for and discharge any goods
carried".
This duty extends throughout the voyage and implies greater care than due diligence.
The carrier must have a sound system for looking after the cargo when stowed.
He has a duty to use all reasonable means to ascertain the nature and characteristics of the cargo and to care
for it accordingly.
The shipper should give special instructions where special care is required.

Where the Hague-Visby Rules apply, what are the carrier's obligations regarding issue of a bill of
loading?
On receiving goods into his charge, the carrier, the Master or the carrier's agent, if the shipper
demands, must issue a bill of lading to the shipper. A "received" bill of lading issued when the goods arrived
at a warehouse or depot before shipment. Any bill of lading issued after loading must be a "shipped" bill of
lading if the shipper demands, provided he surrenders any previously issued document of title (eg a
"received" bill of lading).
What three things do the carrier's rights and immunities under the Hague-Visby Rules concern?
1) The carrier's exceptions from liability;
2) the carrier's right to deviate; and
3) the carrier's rights in respect of dangerous goods.
What exceptions to liability are granted to the carrier by the Hague-Visby Rules?
The carrier or ship will not be responsible for loss or damage arising from:
• act, neglect or default of the master, marine, pilot, or the servants of the carrier in the navigation or
management of the ship;
• fire, unless caused by actual fault of the carrier;
• perils, dangers and accidents of the sea or other navigable waters;
• act of God;
• act of war;
• act of public enemies;
• arrest or restraint or seizure under legal process;
• quarantine regulations;
• act or omission of the shipper or owner of the goods, his agent or representatives;
• strikes, lockouts, stoppage or restraint of labour;
• riots and civil commotions;
• saving or attempting to safe life or property at sea;
• wastage in bulk or weight or any other loss or damage arising from inherent defect of the goods;
• insufficiency of packing; insufficiency of marks;
• latent defects
• any other cause arising without the actual fault of the carrier, or without the fault or neglect of the agents
or servants of the carrier.
Where the Hague-Visby Rules apply, what rights has the carrier regarding deviation?(Justifiable
Deviation)
Any deviation in saving or attempting to save life or property at sea, or any reasonable deviation, will not be
breach of the Hague-Visby Rules or of the contract of carriage, and the carrier will therefore not be liable for
any resulting loss or damage.

Where the Hague-Visby Rules apply, what rights does the carrier have regarding dangerous goods
shipped?
Goods of an inflammable, explosive or dangerous nature, if not properly marked, or if shipped
without the knowledge or consent of the carrier, may be landed, destroyed, jettisoned or rendered innocuous
at any time before discharge. Such goods, even when shipped with the carrier's knowledge and consent, may
be dealt with in this way without liability to the carrier, should they become dangerous.
What is the carrier?

A person (or company, e.g. a shipowner) who agrees to carry goods or persons from one place to another.
in law there are two kinds of carrier: common carriers and private carriers.
What is the shipper?

A person who contracts with a carrier for carriage of good by sea.
Kinds of carrier
(1) common carrier
(2) private carrier
Common carrier
 A person or company who advertises as a carrier of goods of anyone who wishes to use his services,
without restriction, as long as he has space for goods or persons. A common carrier is bond by the common
law obligations and is strictly liable for any loss of or damage to the goods he carries, effectively making him
the insurer of the goods whilst in his care. Very few common carriers operate in the modern industry.
Private carrier (special carrier)

• A carrier who does not hold himself out as a common carrier, and thus reserves the right of
accepting or rejecting offers for carriage. Almost all sea carriers todays are private carriers, carrying goods or
persons on their own terms and conditions.
• he is only liable for damage or the consequences of delay occurring through his negligence.
What is unseaworthy ship in MMSA?

A ship is “unseaworthy” when the materials and construction of the ship, the qualifications of the
master, the number and description of the crew, the weight, description and stowage of the cargo,
the tackle, sails, rigging, stores, ballast, and other equipment are not fit for the proposed voyage.
What is unsafe ship in MMSA?

A ship is “unsafe” by reason of the defective condition of her hull, equipments or machinery, or by
reason of overloading or improper loading, unfit to proceed to sea without serious danger to human
life.

What is difference between strike and lockout?
A strike occurs when employees refuse to work in order to protest working conditions or
compensation. On the other hand, a lockout occurs when an employer prevents employees from
working during a labour dispute.
CHARTERS
Q: What is Charter?
A charter may be:
• a contract for hire of a vsl;
• a contract for the carriage of a quantity of cargo in a named vessel between named ports.
Q: What is a Charter Party?

A charterparty is a document containing the written terms of a charter agreement defining the rights,
responsibilities and liabilities of the owners and charterers.
Q: What are the various types of Charter? (or) What are the ship employments?
Types of charter
(1) voyage charter
(2) time charter
(3) bareboat charter and
(4) demise charter
Q: What is a voyage charter?

A contractual agreement between owners and charterers for the carriage by a named vessel of a specified
quantity of a specified cargo from one named place or places to another named place or places, in return
for an agreed sum of freight.
Q: What are ship owner’s usual basic obligations under voyage charter party?
(1) to provide a seaworthy ship suitable to carry the intended cargo;
(2) to bring the ship to the agreed loading port by the agreed date;
(3) to load the agreed cargo;
(4) to carry the cargo to the agreed destination;
(5) to discharge the cargo.
Seaworthiness – the vessel must be seaworthy when provided for the charterer's use and at each stage
of loading. (sometimes described in C/P as '' tight, staunch, and strong and in every way fitted for the
voyage''). Although this is an implied common law obligation, many C/Ps contain an express warranty
of seaworthiness.
Q: What are charterer’s usual basic obligations under voyage charter party?
(1) to provide the agreed cargo;
(2) to load the cargo within the agreed time;
(3) to pay the agreed rate of freight at the agreed time.

Q: What is owner’s remuneration and charterer’s remuneration under the voyage charter?
Owners are responsible for both running cost and voyage cost except where FIO terms are agreed
in which case charterers are responsible for all cargo handling costs at both ends.
Running Cost: crew wages, insurance premiums (H&M, P&I), stores, lubricants, spare parts,
maintenance and repair, Dry docking, survey and certification
Voyage Cost: bunker, pilotage, tug, line handling, agency, berth dues, canal dues, light dues,
cargo handling, passenger handling
Q: What is an “arrived ship” ?

 A ship which reached the required place (ie; port or berth) under the terms of the charter party, and
is fully at charterers’ disposal. (The charter party may allow her to become an arrived ship even though
she is not in the port, in the berth, in free pratique, or customs-cleared.)
Q: How can a master determine whether his ship is an “ arrived ship”?
• By checking wording of the charter party to establish whether it is a port charter party or a berth charter
party, and checking the ship’s position.
• If a port is defined as the place of loading without specifying a particular loading berth, the charter
party is a port charter party. ( It is unnecessary to be on a berth to be arrived ship; as long as the ship
is within port limit, is at the usual place where ships wait for a berth, and is at the immediate and
effective disposition of charterers, all delays in berthing will be charterer’s account.
• If a particular berth is defined as the loading place, the charter party is a berth charter party and vessel
becomes an arrived ship only when she reached the specified berth.
Q: What does “ready to load” mean?
Ready both physically and legally, i.e with hatches prepared for receiving the cargo, the vessel cleared
customs and other formalities, any required survey carried out and passed.
Q: What is a notice of readiness?

 Notice given to the charterer, shipper, receiver or other person as required by the Charterparty that the
vessel has arrived at the port or berth, as the case may be, and is ready to load or discharge;
Q: When should notice of readiness be tendered?

• As soon as possible, on a day within the layean period (i.e. the laydays), in accordance with the
procedure state in the Notice Clause or Laytime Clause in the charter party.
• This may require that notice be tendered only during office hours, and particular care must be taken
by the master only to tender in strict accordance with the clause.
Q: Who should notice of readiness be addressed to?

To charterers or their agent, not to the shipowners' port agent, although it may be sent via the owners' agent.
Q: In voyage charter, you received sailing instruction and proceed to ..... port for loading cargo, what
would you do (How to call this voyage?)
- This is a preliminary voyage.

- During the voyage, I will observe the C/P terms especially cancelling date, tender time.
- I will proceed with all reasonable speed to reach agreed loading place not later than the cancelling date.

- I will ensure that vessel to be in all respect ready to load.
- I will tender NOR when vessel becomes an arrived ship.
Q: After you arrived, what will you prepare?

- I will ensure that vessel to be in all respect ready to load. (physically and legally)
- I will tender NOR when vessel becomes an arrived ship.
Q: Which clause state that about NOR tender?

Notice clause. Sets out the detailed procedure for tendering and acceptance of the “Notice of Readiness”
when the vessel is arrived and ready at the ports.
Q: What is paramount clause?
Paramount clause. A Paramount clause incorporates the Hague or Hague-Visby Rules or
Hamburg rule into the charter party. The Rules sets out the responsibilities, liabilities, rights and
immunities of the carrier and the cargo interests.
Q: What is Both to Blame Collision clause?

Both to Blame Collision clause
• Under UK law, when two colliding vessels are both held to blame, their liabilities are in proportion to
their respective degrees of fault;
• Cargo owners cannot claim from carrying vessel because collision is an excepted peril under the Hague
Rules and the Hague-Visby Rules;
• Cargo owners can claim from the non-carrying vessel and the non-carrying vessel shall pay the cargo
owners in accordance with the degree of fault;
• Under American Law, cargo owners are entitled to recover 100 percent of their losses from the non-
carrying vessel in spite of the fact that each vessel is only partly to blame;
• Non-carrying vessel owners may then recover the owners of the carrying vessel a proportion of the
claim equivalent to their percentage of the blame;
Q: What is safe port?
 A port which the vessel can safely reach, enter, stay at and leave without any requirement other than
normal good seamanship.
• There must be safe access and the port must be free from permanent obstruction.
• The vessel must be able to lie safely afloat at all states of the tide, unless it is customary and safe to
load and or discharge aground or there is specific agreement that she will do so.
• There must be adequate facilities for trade.
• It must be politically safe, free from any state of war or embargo.
• The ship, having reached the port, must be able to leave without lowering or cutting her masts.
Q: What is safe berth?

 A berth which is safe in all respects as a safe port. If the ship cannot lie at the berth in safety, it is not
a safe berth. The master is entitled to refuse to proceed to an unsafe berth, and to leave a berth which
becomes unsafe.

Q: What is laytime?
 Laytime is the period of time agreed between the shipowners and charterers during which the
shipowners must make and keep the ship available for loading and/or discharging without payment
additional to the freight. Laytime is measured in days, hours and minutes.
Q: What is laydays?
 An agreed period of specified days (eg “ Jan 8/15”) during which the shipowners must present the
vessel to the charterer at agreed place for loading. Failure to tender notice of readiness within the
laycan period will give charterer the option to cancel the charter and sue the owners for damages.
The final layday is the cancelling date.
Q: What is cancelling date?
 The final day of laydays. Arrival after the cancelling date will give charterers the option of
cancelling the charter and suing for damages. Charterer might, however, accept the ship for loading
even if she is late.
Q: Charter party messages and market reports sometime refer to a “laycan” or “lay/can” period. What
is this?
▪ Lay/can is a contraction of “laydays and cancelling date” . For example, a lay/can of “18/22 Jan”
would means that the first layday is 18 January and final layday or cancelling date is 22 January.
Q: What is Deadfreight?
 A sum of liquidated damages charged by owners to charterers for cargo that was agreed for loading
but not actually loaded. If the charter party specifies "60,000mt", but only 50,000 tonnes is loaded,
deadfreight is due on 10,000 tonnes, at the same rate as the freight. Any margin allowed to charterers,
e.g. "10% more or less in charterers' option" should, however, be allowed for, so that in the above
example charterers can legally load as little as 54,000 tonnes. The master should make out a Deadfreight
Claim form.
Q: What is Demurrage ?
 The sum of liquidated damages which become payable by charterers to owners for each day, or part
thereof if stipulated, for detaining the ship beyond the time of expiry of laytime.
 Demurrage is normally paid per running day, 'once on demurrage, always on demurrage'.
Q: What is Damages for detention ?

 A sum of damages awarded by charterers to owners who successfully sue charterers for unreasonable
detaining the ship beyond a reasonable demurrage period.
 There may be a maximum number of days allowed on demurrage. If the ship was detained beyond a
reasonable demurrage period, owners were allowed to claim their actual losses caused by the delay.
Q: What is dispatch or dispatch money?
 A monetary reward payable by owners to charterers for completion of cargo operations within the
agreed laytime period before the laytime has expired. The rate for despatch is stated in the Demurrage
and Despatch Clause and is usually half the demurrage rate for all time saved, which mean that
laytime exclusions (for weather, etc.) are not taken into account after the completion of cargo. For
working time saved, laytime exclusions must be taken into account.

Q: What deviations from the customary route are usually justifiable when on a voyage charter?
1) A deviation made to save or attempt to save life (e.g. responding to a DSC distress alert or "Mayday");
2) A deviation made to avoid imminent danger (e.g. a TRS);
3) A deviation due to the default of the charterer (e.g. where the discharge port nominated by the charterer
is found to be unsafe);
4) An in voluntary deviation due to forcing orders beyond the ship owner's or master's control (e.g. on a
warship's orders); and
5) A deviation made to save property (e.g. for salvage purposes.
Q: What is a WIBON?
“WIBON” means “Whether in Berth or Not”

It is provision in a voyage charter.
Owners insert “waiting for berth clause” or the words “WIBON” in charter party.
When the ship has arrived at the port and tendered notice of readiness, laytime will start to count in
accordance with the Charter-Party whether or not the ship has reached the berth.
Q: What is a time charter?
TIME CHARTER is a contract for the hire of a named vessel, complete with crew, for a specified period
of time.
 Owners are responsible for all running costs, i.e.
 costs of keeping the ship in a seaworthy and serviceable condition including drydocking and
survey costs, repair and maintenance costs, hull and machinery insurance premiums, crew costs,
provisions, stores, water and lube oil costs.
 Owners operate the vessel technically but not commercially.
 Owners bare no cargo handling expenses and do not appoint stevedores.
 Charterers are responsible for the commercial employment of the vessel.
 Charterers pay for bunker costs, port and canal dues, pilotage, tug hire, agency fees and loading,
stowing, trimming and discharging costs.
 They normally appoint port agents and hire stevedores.
Seaworthiness – the vessel provided must be seaworthy for the purposes of the contract at the time of
contract's making. Thereafter, owners usually agree only to exercise due diligence to make the vessel
seaworthy for each voyage during the charter period.
Q: What is a shipmaster’s legal position in relation to time charterers?

 The master should follow a time charterer's instructions insofar as they relate to the
commercial activities of the ship.
 the charterers to give the master the necessary sailing instructions;
 the master to be under the orders of the charterer as regards employment, agency, or other
arrangements;
 the master to prosecute the voyage with the utmost despatch and render customary assistance
with the vessel's crew;
 the master and engineers to keep proper logs accessible to charterers or their agents;

 if the charterers are dissatisfied with the conduct of the master, the owners will investigate the
matter and if necessary and practicable, change the appointments.
Q: What is owner’s remuneration and charterer’s remuneration under the time charter?
Owners are responsible for all running costs. Charterers are responsible for all voyage costs.
Running Cost: crew wages, insurance premiums (H&M, P&I), stores, lubricants, spare parts,
maintenance and repair, Dry docking, survey and certification
Voyage Cost: bunker, pilotage, tug, line handling, agency, berth dues, canal dues, light dues,
cargo handling, passenger handling
Q: What is a bareboat charter?
A contract for the lease of a vessel for an agreed period during which the charterer acquires most
of the rights of the owner. It is a ship financing arrangement rather than a trading agreement.
Q: What is a Charter by demise?
A bareboat charter hinged to a management contract, so that the shipowners manage the vessel
on behalf of the bareboat charterers. This is useful to charterers (such as an oil company) who
don't want to spend extra money on increasing their ship management team.
Q: What are the various types of terms and conditions printed or written in charter parties?
• Standard terms are clauses printed on the charter party form.
• Side clauses are typed clauses inserted in a standard contract, often amending the printed
terms.
• Rider clauses are typed clauses containing additional terms agreed by the parties,
normally added at the end of the standard terms; they over-ride any standard term
conflicting with them. (Q: What is Rider clause?)
• Sensitive clauses may be contained in Addenda document and it is clause that the parties do
not want to be in the main charter party document for reasons of security.
• A side letter may be appended concerning matters relating to the contract, such as charterers'
instructions to the master.
Q: What does "exercise due diligence" mean?
• Taking all reasonable precautions to see that the vessel is fit for the intended voyage.
• If a ship owner fails to check the qualifications of his ships' officers, he fails to exercise due
diligence.
• The carrier is not obliged to give an absolute guarantee of seaworthiness.
• The carrier may delegate his duty to exercise of due diligence (e.g. to surveyors or repairers)
but he will be responsible if they fail to exercise due diligence in carrying out their work.

BILL OF LADING
Q: What is BL?
Bill of lading is a document issued by the carrier for goods either received into his custody or shipped on
board his vessel.
Q: What are BL functions? Explain details.
(1) It is a receipt for the goods specified therein; B/L is issued by the carrier once the goods have been
received into his custody or shipped on board his vessel.
(2) It is a document of title; B/L is a transferable and negotiable document and someone who is holding
the B/L is deemed to be the owner of the goods specified therein, in the absence of fraud.
(3) It is evidence of a contract; B/L contains carrier's terms, conditions and exceptions; it is signed only
by the carrier or his agent; although it is not signed by both parties, it shall be construed as the contract
between carrier and cargo owners.
(4) It is evidence of freight received; If freight is prepaid, BL is a contract that legally proves
that the carrier has received the freight and is required to deliver in good condition.
Q: Who can sign BL?

Carrier or his agent or master can sign Bill of lading.
Q: Is BL contract or not?
BL is evidence of a contract. B/L contains carrier's terms, conditions and exceptions; It shall be construed
as the contract between carrier and cargo owners.
Q: How do you understand negotiable BL?

Original Bill of Lading can be transferred from one party to the next, this is called Negotiable Bill
of Lading.
A Negotiable Bill of Lading is considered a document of title. The original consignee transfers
title of the goods to another party by signing, or 'indorsing' the back of the bill.
Q: How do you understand Non-negotiable BL?
Non-negotiable Bill of Lading cannot be transferred from one party to the next. Eg. Copy BL,
Straight BL.
Straight bill of lading is Non-negotiable bill of lading. The carrier is obliged to deliver the cargo
to the consignee specified on the bill of Lading.
Q: Type of BL?
Clean B/L
A B/L which bears no superimposed clauses expressly declaring a defective condition of the goods or
packaging.
Foul B/L ( Dirty, unclean, claused )
A B/L which is claused with remarks.
Received for shipment B/L (Custody B/L)
The B/L issued to shipper when the carrier receives the goods in his custody usually at a ware house.
Shipped B/L (On Board B/L)
The B/L issued by the carrier after the goods are loaded on the carrying ship.
Direct B/L
B/L covering carriage of goods in one ship direct from one port to another.
Through B/L

A B/L issued when the carriage will involve both sea and other transport modes;
The sea carrier issues the through B/L and accepts responsibility for the sea portion.
Combined Transport B/L
A B/L issued by Combined Transport Operator when goods are carried from door to door by various
transport modes;
The issuer takes responsibility for the entire movement.
Open B/L
A B/L where no consignee is named and kept opened.
Straight B/L
A B/L where consignee is named and the named consignee takes delivery.
Bearer B/L
A B/L where goods are deliverable 'to bearer' and does not require any endorsement;
Someone who is holding B/L is entitled to goods.
Order B/L
A B/L where consignee is not named and has the words ' to order' instead;
By 'blank endorsement' , 'order B/L' can be converted into 'bearer B/L';
By 'special endorsement', 'order B/L' can be converted into 'straight B/L';
Outward B/L
A B/L issued in respect of goods being exported from the country to a destination abroad.
Homeward B/L
A B/L issued abroad to cover a shipment of goods being imported into the country.
Common Short Form B/L
A B/L having only a few standard terms printed on it;
Liner B/L
A B/L used in liner trade.
Q: What is Waybill or Seaway bill ?

A Seaway Bill is a document regarding the carriage and receipt of goods.
• It is a non-negotiable document.
• It is not a document of title. It provides the receipt for the goods by the carrier and evidence of
the contract of carriage for the goods specified therein.
• It may travel with the goods on the ship and does not have to arrive ahead of the goods for the
receiver to claim the goods.
• It is preferred to Bill of Lading in trades where Bills of Lading often lag behind the cargo and
where there is no contractual requirement for B/L.
• It may also be used when there are no payment requirements for goods such as mails, personal
effects, samples, documents, etc.
Q: What precautions would you take as Master when signing B/L on behalf of the owner?
(1) Must be in proper form.

(2) The goods have actually been shipped.
(3) The date of shipment is correct
(4) Freight, if prepay able, has been paid.
(5) Any clause corresponding Mate’s Receipt is also contained in the B/L.

(6) Any charter Party terms do not conflict with the B/L terms
(7) Reference is made to the Charter Party where one exists
(8) The number of original bills in the set is stated.
Q: What is front side and back side of B/L?
The front side of B/L contains the shipper, consignees and cargo details. On the back side there
is written the terms and conditions. For endorsement, seal and signature is on the terms and
conditions printed on the back of B/L.
FREIGHT
 Freight is the remuneration to which carrier of goods by sea is entitled on the performance of his
contractual obligations or otherwise, depending on the terms of the contract.
Kinds of freight
(1) Ad valorem freight
(2) Pro-rata freight
(3) Distance freight
(4) Back freight
(5) Advance freight
(6) Lump sum freight
(7) B/L freight
(8) Dead freight
(9) Distress freight
(1) Ad valorem freight

 Freight charged on valuable goods at a rate stated as a percentage of the value of a shipment.
(2) Pro-rata freight

 Freight payable in proportion to the length of voyage being performed.
(3) Distance Freight

 Extra freight payable to the carrier due to increased distance carried.
(4) Back freight

 Freight payable by a shipper for the return carriage of goods to the original port of shipment;
 If non-delivery or non-acceptance was the vessel's fault, no back freight will be payable.
(5) Advance freight (or) Pre-paid freight

 Freight payable in advance at the loading port, the balance being payable on delivery of the cargo;
 It is not refundable if the vessel and cargo is lost.

(6) Lump sum freight
 A fixed sum payable irrespective of the amount of cargo carried.
(7) B/L freight

 Freight calculated on shipped or in taken weights, as stated in a B/L;
(8) Dead freight

 A rate charged to charterers for cargo agreed for loading but not shipped.
(9) Distress freight

 Freight much lower than the prevailing rate.
DISTRESS INCIDENT
Which SOLAS regulation sets out a master’s obligation in distress incident?

SOLAS Regulation V/33.
What are s shipmaster’s obligations on receiving a distress alert?

To proceed with all speed to the assistance of the persons in distress.
To inform them or SAR service, if possible, that the ship is doing so.
Entry must be made in the official log book or radio log of the receipt of the distress signal.
Entry should be made describing assistance being given.
Where a distress signal has been received, in what circumstances is the master of a ship at sea not
bound to proceed to assist?
If the ship receiving the distress alert is unable to do so(eg; because it is disabled with an engine breakdown)
or, in the special circumstance of the case, consider it unreasonable or unnecessary to do so.(The master of
loaded gas carrier might consider to assist a tanker on fire unreasonable. The master of a ship in a busy
shipping area might consider the obligation to assist a ship 100 miles away unnecessary should be known
that many other ships would be closer to the distress position)
COLLISION
What are the immediate statutory duties of master of a ship following a collision?
If and so far as he can do so without danger to his own ship, crew and passengers(if any)
(1)to render assistance to other ship, its master, crew and passengers (if any) such assistance as may
be practicable and may be necessary to save them any danger caused by the collision, and to stay by
the other ship until it is no longer in the need of further assistance and
(2) to give to the master of the other ship the name of his own ship and the names of the ports from
which it comes and to which it is bound.

Following a minor collision with another ship, what action should the master take to protect his ship
owner’s interest?
He should
(1) advice owners/mangers.
(2) call the P&I club’s local correspondent
(3) serve written notice on the master of the other ship, holding him and his owners liable for the
collision and inviting him to a survey of damage. He should not admit any liability to other ship or
any person without the P& I club’s approval.
Following a collision with another ship, what information should be gathered for owner’s lawyer?
Master should full report describing all events leading to collision and gather following:
(1)Deck & engine room log book, movement book
(2)Graphs and printouts from bridge equipment (echo sounder, course recorder, etc.)
(3)Statements from all witnesses (pilots, tug master, etc.)
(4)Full details of both ships(name, port of registry, call sign, gross tonnage, etc.)
(5)Exact location of collision
(6)Exact time of collision
(7)Difference between bridge and engine room clocks
(8)Estimates of speed and course of both vessels at the time of impact
(9)Estimates of angle of impact
(10)Charts in use before and up to time of collision
(11)Weather and tide condition at the time of collision
(12)List of all navigation equipment in use at the time of collision
(13)Records of all signals and communications made between the colliding ships
(14)Names and position of other ship in the vicinity at the time of collision
(15)Details of any pilotage or vessel traffic control in operation at the time of collision
(16)In the case of collision involving a moored vessel, details of moorings deployed
Q: What reports must the master make following a berthing accident in which both ship and
quay are damaged?
The Master should report the accident to: the port state administration; the harbor master or
berth operator; the ship owners or managers; the time charterer if any; the P&l club
correspondent
Q:What actions should be take to protect the owner’s interests following a berthing accident
in which both ship and quay are damaged?
Master should (1) inform the owners and P&I correspondents (2) send full report to owners, signed
by pilot tug master and any eye-witnesses, including speed, angle of approach, extracts from logs
detailing helm and engine movements, weather conditions, state of tide and current (3) record in the
deck log any defects or damages to the jetty (4) with the assistance of P&I correspondents, appoint

an independent surveyor to inspect the damage , joint survey with surveyor appointed by
port/terminal (5) take and submit to owner photographs of quay damage (6) Survey the damage to
the vessel and attempt to agree the extent of damage
Q: What document will the master receive from the port or terminal operator after colliding
with a quay and what should be the master’s response to it?
Letter of protest
Master should sign this “for receipt only” and should not admit any liability. Ship may not be liable
if the damage is caused beyond the master’s control. Underwriters and P&I club rules prohibit owners
from admitting liability without their consent.
Q: In case of berthing accident in which both ship and quay are damaged, which damage is
covered under which insurance?
Ship damage is covered under Hull and Machinery insurance.
Quay damage is covered under P&I Club insurance.
Q: Stowaways are discovered during voyage. What actions should be taken?

Master should
(1) Take stowaways into custody.
(2) Check passports or ID cards if any.
(3) Ask name, address and other relevant information (where they came from, where they got
onboard, purpose of attempted stowing away)
(4) Prepare a statement for presentation to shore authorities
(5) Notify relevant authorities at port of embarkation and next port as well as flag state
(6) Do not depart the from planned voyage to seek disembarkation of stowaways unless repatriation
has been arranged with sufficient documentations and permission for disembarkation.
(7) Present stowaways to authorities at next port of call in accordance with their requirement
(8) Take appropriate to ensure safety, health and welfare
FLAG STATE
Q: What is flag state?
A state whose flag a ship flies and is entitled to fly.
Q: What is flag state control?
Effective enforcement, by the flag State Administration of the implementation of international

agreements and national regulations that are in force onboard the vessel entitled to fly the
state’s flag.

Q: what are the functions of a flag state administration?
(1). Setting, monitoring and enforcing standards of safety and pollution prevention on
vessels flying the State's flag;
(2). enforcing international standards of safety and pollution prevention on foreign ships
visiting the State's ports;
(3). Setting and enforcing statutory merchant shipping regulations for the Flag State;
(4). surveying and inspecting vessels in accordance with domestic and international
regulations;
(5). setting and enforcing standards of seafarers' competency;
(6). investigating accidents involving ships flying the State's flag and ships of other flags
when in the State's waters;
(7). approving equipment types for vessels under international regulations;
(8). advising on matters such as loading of hazardous cargoes and other safety matters;
(9). maintaining a register of ships flying the State's flag.
(10). Monitoring and enforcing compliance with international ship and port security
provisions.
PORT STATE
Q: What is port state?
A state within those territorial sea a port or anchorage is situated.
Q: What is port state control?
Inspection, by a port state control authority, at ports and anchorages within the jurisdiction of
the port state, of vessel flying flags other than that of port state for the purpose of enforcing
international standard for maritime safety, security, pollution prevention and on-board living
and working conditions.
Q: what are the functions of a Port state administration?

(1). Verifying compliance with IMO international conventions (SOLAS, MARPOL, STCW,
MLC, COLREG,…)
(2). Ensuring compliance with international rules
(3). Detaining substandard ship
(4). Applying a targeting system when selecting vessels to inspect
(5). Harmonizing and strengthening PSC procedures
(6). Providing technical assistance and training

Q: What is regional port State control agreements?
A formal agreement (usually called memorandum of understanding) between the regional

port state administrations on the use of harmonized port state control inspection procedures
and sharing of inspection data, designed to eliminate the operation of sub-standard foreign
ships in the region covered by the MoU.
Q: What regional port State control agreements are is operation?
1. The Paris MoU in EU maritime States as well as Croatia, Iceland, Norway, Russia and
Canada;
2. The Caribbean MoU;
3. The Tokyo MoU in “Pacific rim” nations;
4. The Latin American Agreement (Acuerdo de Viña del Mar) in South and Central America;
5. The Mediterranean MoU in the Eastern Mediterranean;
6. The Indian Ocean MoU in nations bordering and within the Indian Ocean; the
7. The Abuja MoU in West and Central Africa;
8. MoU in Gulf Co-operation Council countries (UAE, Oman, Saudi Arabia, Bahrain, Qatar
and Kuwait). The US Coast Guard Port State Control Program operates unilaterally in the
USA and US territories (Puerto Rico, US Virgin Isaland, Guam, Northern Mariana Islands
and American Samoa).
COASTAL STATE
Q: What is coastal state?

coastal State means a State in whose territory, including its territorial sea, a marine casualty or
marine incident occurs.
SHIP CLASSIFICATION
Q: What is ship classification? Q: What is purpose of ship classification?
A process involving
1. Establishment of technical standards for ship designs, construction and maintenance,
published as rules of classification society
2. Application of those rules to a ship
3. Special survey of the ship by classification society’s surveyor to confirm that ship have
been constructed to the required standard
4. Issuing Certificate of class
5. Monitoring period class surveys

Q: What is ship classification society? Q: What is purpose of ship classification society?
An organization that establishes and applies technical standards in relations to the design,
construction and survey of marine-related facilities including ships and offshore structures.
Q: Which classification societies are members of IACS?

(1) American Bureau of Shipping (ABS); (2) Bureau Veritas (BV); (3) China Classification
Society (CCS); (4) Croatian Register of Shipping (CR ); (5) Det Norske Veritas DNV (6) Indian
Register of Shipping (IRS); (7) Korean Register of Shipping (KR); (8)Lloyd Register (LR); (9)
Nippon Kaiji Kyokai (Class NK) (10) Polish Register of Shipping (PRS); (11) Registro Italiano
Navale (RINA) (12) Russian Maritime Register of Shipping
Q: Is classification a statutory requirement for a ship?

No, SOLAS does not require any ship to be classed. But SOLAS Reg; II-1/3-1 does provide
that ships must be designed, constructed and maintained in compliance with the structural,
mechanical and electrical requirement of classification society recognized by FSA or
applicable National Standards.
Q: What is main functions of classification society?

Carrying out;
1. Statutory surveys on behalf of FSA

2. ISM audit for some FSA
3. ISPS audit for some FSA
4. Analysis of bunker fuel and lube oil, research and development
Q: What is condition of class?

Requirement of class surveyors, recorded on Intermediate Certificate of Class, that a specific
measure, repair, surveys, etc. must be carried out by specified date in order for the ship to
retain her class. When confirmed by class surveyor to have been satisfactorily complied with,
a previously imposed condition of class will be shown on Interim Certificate of class under
the heading “Conditions of class now deleted”.
Q: What is “class Memoranda”?

Information related to the ship, its machinery and equipment or rule requirements which does
not require survey or corrective action, Eg; exemptions from rule requirements

Q: What is “Certificate of class”?
Certificate issued by classification society. It certifies that the ship has been surveyed by
society’s surveyors and reported by them to be in compliance with the society’s rules and
regulations and hull and machinery has been assigned the specified class.
Q: What is “Interim Certificate of class”?

Certificate issued by classification society’s surveyors when he confirm to society committee
that his recommendations have been carried out to satisfaction and that he considers the ship
to be in a fit and efficient condition to continue the voyage. ( It is a form of certificate of
seaworthiness)
Q: In what circumstances, the class will be suspended?

• When the ship is not operated in compliance with the rule requirements.
• When the ship proceeds to sea with freeboard less than assigned.
• When the owner fails to request a survey after having detected defects and damages that
affect the class.
• When repairs and alterations concerning the class, are carried out without requiring the
attendance of surveyor.
Q: In what circumstances, the class is automatically suspended?

• When the class survey has not been carried out within its due date or time granted unless
the ship is in attendance of the surveyor
• When annual/intermediate survey not completed within the survey window
• In other circumstances when the owner fails to submit the ship to a survey following the
special requirements.
• In case of non-payment of fees or expense chargeable for service not rendered.
Q: In what circumstances, the class will be withdrawn?
• When requested by the owner.

• When class is suspended for more than 6 months.
• When the ship is reported lost.
• When the ship is reported constructive total loss
• When the vessel will not trade further

Q: How is a ship’s class denoted?
By notation on its certificate of class. Each classification society has its own system of character
symbols, figures and letters.
Q: What is Class Notation?
Class notations are mentioned in the “certificate of class” of the vessel. These notations are the
symbols that signify the standards to which the ship is built.
RECOGNIZED ORGANIZATION (RO)
Q: What is Recognized organization?
It is organization recognized by the Administration under a written agreement to undertake

statutory surveys and issue statutory Certificates on behalf of the Administration. They are
generally classification societies.
MASTER
Q; What is the “shipmaster”?
Master means the person having command of a ship, qualified by the appropriate certificate of
competency who is appointed by the shipowner.
MASTER'S RESPONSIBILITIES
Q; What are the master’s chief responsibilities under common law?
1. the preservation of the safety of the crew, any passengers and the ship;
2. the safeguarding of the marine environment;
3. the prosecution of the voyage with the minimum of delay and expense;
4. to always act in the best interests of the ship owner;
5. to carry out all that is usual and necessary for the employment of the vessel;
6. to obey the owner's instructions (except where they would mean breaching the law);
7. to exercise care of the goods entrusted to him and see that everything necessary is done to
preserve them from harm during the voyage.
Q: What are a master’s responsibilities under ISM Code?

1. implementing the safety and environmental protection policy of the company;
2. motivating the crew in the observation of that policy;
3. issuing appropriate orders and instructions in a clear and simple manner;
4. verifying that specified requirements are observed;

5. reviewing the Safety Management System and reporting its deficiencies to the shore-based
management;
Q: How should the Master implement the company's safety and environmental protection
policy?
By ensuring that all procedures and instructions documented in the shipboard safety management
system (SMS)are followed at all times.
Q: How can the master motivate the crew in the observation of the Company’s safety and
environmental protection policy?
1. Involvement in the SMS;
2. Providing feedback, e.g. expressing appreciation for crew achieving objectives;
3. Offering incentives for reporting hazardous incidents;
4. Explaining the Company’s safety and environmental policy;
5. Regular training;
6. Avoiding demotivating issues such as late payment of crew wags and poor work organization.
Q: What does the ISM Code mean when it refers to "issuing orders in a clear and simple
manner"?
Writing, simple, unambiguous instructions in, for example; Master's standing orders and bridge
night order books. Master's orders should not conflict with other documented procedures in the
SMS.
Q: How can the Master verify that specified requirements are observed?
By carrying out regular Master's audits, ie; checking of onboard logs, records, checklists, observation
of work procedures and oral questioning and comparing findings the requirements of the SMS.
Q: How frequently should the Master review the SMS?

Periodically, ie at regular intervals. The company's SMS should contain instructions and guidance
for the Master to review the effectiveness of the SMS and report its deficiencies at regular intervals.
MASTER'S AUTHORITY
Q: What is ISM Code requirement for statement of master's authority?
• The company should ensure that the SMS operating on board the ship contains a clear
statement emphasizing the master's authority. The company should establish in the SMS that
the master has the overriding authority and the responsibility to make decisions with respect
to safety and pollution and to request the Company's assistance as may be necessary.

Q: What is Master's Overriding authority as per ISM code ? Any example when it will be
called that a master has used his overriding authority ?
Master has the overriding authority to make decisions with respect to safety and pollution
prevention.
Example (1); The charterers of the ship advise Master to take a shorter route that is expected to have
very heavy weather. Master wants to choose longer route which is safer. Charterers and ship owner
are trying to force their decision on master. Master can use his over-riding authority and select the
safer route.
Example (2): Master is asked to berth the vessel with very less under keel clearance. Even if
company has evaluated the situation and granted permission to berth with lesser UKC than
minimum requirement. Master can use his over-riding authority and refuse to proceed the berth.
Q: What is ISPS Code requirement for statement of master's authority?

• The company shall ensure that the Ship Security Plan must contain a clear statement
emphasizing the master's authority. The company shall establish in the Ship Security Plan that
the master has the overriding authority and the responsibility to make decisions with respect
to safety and security of the ship and to request the assistance of the Company or of any
SOLAS Contracting Government as may be necessary.
MASTER'S DISCRETION
Q: What does SOLAS say about the master’s discretion for safety navigation and protection of
the marine environment?
SOLAS regulation V/34.1 makes it illegal for a person to compromise the master’s discretion in
decision-making. It provides as follows: “The owner, the charterer, the company operating the
ship, or any other person shall not prevent or restrict the master of the ship from taking or
executing any decision which, in the master’s professional judgement is necessary for safety of
life at sea and protection of the marine environment.”
Q: What does SOLAS say about the master’s discretion for ship safety and security?
SOLAS regulation XI-2/8.2 provides as follows: “The master shall not be constrained by the
Company, the charterer or any other person from taking or executing any decision which, in the
professional judgement of the master, is necessary to maintain the safety and security of the ship.
This includes denial of access to persons (except those identified as duly authorized by a
Contracting Government) or their effects and refusal to load cargo, including containers or other
closed cargo transport units.”

Q: What does SOLAS say about resolving conflicts between ship safety and security
requirements?
SOLAS regulation XI-2/8.2 provides as follows: “If, in the professional judgement of the master,
a conflict between any safety and security requirements applicable to the ship arises during its
operations, the master shall give effect to those requirements necessary to maintain the safety
of the ship. In such cases, the master may implement temporary security measures and shall
inform the Administration and, if appropriate, the Contracting Government in whose port the
ship is operating or intends to enter. Any such temporary security measures under this regulation
shall, to the highest possible degree, be commensurate with the prevailing security level.
MASTER'S LIABILITY
Q: What kind of legal liabilities is shipmaster exposed to?

Civil liability (in relatively few areas) and criminal liability (in numerous areas).
Q: What is meant by a master’s civil liability?

The liability of a master for damages in civil law, including contract law, agency law and tort law, as
determined by a civil court.
Civil Liabilities are
(1) breach of contractual obligations;
(2) absence without leave;
(3) smuggling;
(4) breach of immigration law;
Q: What is meant by the master’s criminal liability?
Liability for offences against the criminal law of the flag State, a coastal State or a port State, for
which the penalty is usually either a fine, or imprisonment, or both.
Criminal Liabilities are:

(1) failing to render assistance to the collided vessel;
(2) making a ship dangerously unsafe;
(3) illegal discharge of oil;
(4) failing to comply with government directions given following a shipping casualty;
(5) sailing without valid Oil Pollution Insurance Certificate;
(6) proceeding to sea in contravention of a Detention Order;
(7) carrying passengers in excess of the number allowed;
(8) Proceeding against the traffic flow in a Traffic Separation Scheme.

ILLNESS / INJURY / DEATH
Q: What action would you take as master for illness/ personal injury at sea?
Give medical treatment as described in the Ship's Captain's Medical Guide;
1. If necessary, obtain radio medical advice;
2. If on-board treatment is insufficient, Inform owners/charterers and make a deviation to land
the seaman;
3. Obtain witness statements at the time of accident;
4. Have the Safety Officer investigate, report and make an entry in the accident record book;
5. Request owners to nominate an agent;
6. Call appointed agent as soon as known;
7. Pass ETA and information necessary for making preparations for vessel's arrival;
8. Request agent to notify:
a. Port Authorities of the intention to land person(s);
b. Pilot station, customs, port health, immigration, etc.;
c. Local P & I club correspondent;
9. On arrival at the port obtain health clearance in accordance with local rules;
10. Properly sign off the injured seaman;
11. Wages and effects of the seaman should be handed over to the injured seaman if possible;
12. If not possible wages and effects should be landed to the care of the agent;
13. Insert a copy of the tally in the luggage and one in the OLB;
14. Notify the consul of the foreign country;
15. Send accident report to Flag State Administration;
16. Amend all port crew lists;
17. Send full report and all records to owners;
18. Clear outwards and resume the voyage;
19. Detailed entry made in the OLB including illness or injury, any medical treatment, deviation,
landing of the patient, landing of any personal property, notification of the proper officer, etc.
Q: Shortly before departure from a port, seaman(A/B) breaks a leg in a fall and requires
hospital treatment. What arrangement should the master make?
Master should
(1) Report accident to the local authorities
(2) Ensure first aids treatment in accordance with the ship Captain’s medical guide
(3) Arrange transportation to hospital
(4) Ensure safety officer investigation the accident
(5) Report the accident to Administration
(6) Contract the ship’s agent to make travel arrangement and complete immigration and other
formalities.
(7) Make discharge documentation
(8) Wages and effects of the seaman should be handed over to the injured seaman if possible; If not
possible wages and effects should be landed to the care of the agent; Insert a copy of the tally
in the luggage and one in the OLB
(9) Arrange for leaving the seaman behind

(10) Check Safe Manning Document and ascertain whether a replacement is required
(11) Inform owner, manager
(12) Make official log Book entries
Q: A seaman dies after being struck on the head by a derrick heel block that he was removing
for inspection. What action would you take as master?
1. Cause of death established and certified, if possible by a doctor, if available.
2. If no doctor is on board, consult Ship Captain's Medical Guide.
3. Inform owners.
4. Obtain witness statements at the time of death.
5. Inform the deceased's next-of-kin a.s.a.p.
6. Inform the agent at the next port.
7. Inform P & I club correspondent.
8. Make entries in the deaths section of OLB
9. Have the Safety Officer investigate, report and make an entry in the accident record book.
10. On receipt of the Safety Officer's report, complete casualty and accident report form and inform
flag state Administration.
11. Report to marine superintendent.
12. Make appropriate discharge entries in the List of Crew and have them witnessed. Amend all
port crew lists.
13. Preserve the body if possible, for landing ashore, but if impossible, perform a burial at sea in
compliance with the Ship Captain's Medical Guide.
14. Check Safe Manning Certificate and ascertain whether replacement is required. If replacement
is required, inform owners and agent at the next port.
15. Inquiry is to be held at the next port where there is a marine superintendent or proper officer,
make an OLB entry to that effect.
16. Deal with the deceased seaman’s property and wages .
Signs of death: heart has stopped, breathing has stopped, pupils are large & no response.
SHIP’S COSTS
1. Capital costs
 Costs of acquiring ship including purchase costs, loan repayments, interest, leasing
charges, initial registration fees, taxes,
2. Running or operating costs
 Costs of keeping in seaworthy and serviceable operating conditions;
 Include dry docking and survey costs, repair and maintenance costs, hull and
machinery insurance premiums, crew costs, provision, stores, water and lube oil costs;
3. Voyage costs
 Costs associated with commercial employment
 Include bunker costs, port and canal dues, pilotage, tug hire, agency fees and
loading/discharging costs.

Q: What is difference between mortgage and loan?
A loan is a financial arrangement where a lender provides funds to a borrower, who agrees to repay
the borrowed amount with interest. A mortgage is a legal agreement used to secure a loan,
CERTIFICATE OF REGISTRY
Q: What is ship register?
An official records of ships entitled to fly a state’s flag.
Q: What is the chief practical Purpose of registering a ship?
(1) to establish ship's nationality, measurement and tonnage for identification purposes;
(2) to enable the ship to trade internationally;
(3) to facilitate easier sale and purchase of the ship;
(4) to facilitate ship finance.
(5) To enhance the value of the ship
Q: What is procedure for registering?
(1) application by owner to Registrar; ( Application Form )

(2) evidence of title submitted; ( Builder’s cert./ Bills of sale , etc )
(3) declaration of eligibility made by owners;
(4) measurement survey carried out by the approved surveyor and certificate of survey sent to Registrar;
(5) Official number issued by the Registrar;
(6) Carving and Marking Note issued by the Registrar.
(7) Ship carved and marked with draught marks, name, Port of Choice, Official Number and net tonnage;
(8) When marks have been made, Inspector certifies Carving and Marking Note and returns it to Registrar.
(9) entry of all particulars in Register Book;
(10) issue Certificate of Registry.
Q: What is Cert; of Registry?

Certificate issued by flag state after completion of registration procedure requirements.
Q: What are the status and use of the COR?
(1) Certificate of Registry shall be used only for the lawful navigation of the ship.
(2) is the only proof of the vessel's nationality.
(3) should always accompany the ship, in order to establish her nationality and tonnage when required.
(4) is not a document of title, and is not to be taken as legal evidence of registered ownership.
(5) is probably the most important document on the ship.
Q: What are the purpose of the COR? What are the benefits of the COR?
(1) For proving ship’s nationality

(2) For obtaining clearance from a foreign port

Q: What are the contents of a COR ?
(1) Official number

(2) IMO number
(3) Radio call sign
(4) Name of ship
(5) Port of Choice
(6) Type of ship
(7) Method of propulsion
(8) Engine maker/model
(9) Total engine power
(10) Length, breadth, depth
(11) Register Tonnage / Gross Tonnage / Net Tonnage
(12) Year of build
(13) Date of issue of certificate
(14) Date of expiry of certificate ( for some Flag States )
(15) Ownership details of the ship
(16) instructions as to what to do if the ship is lost or ceases to be a registered ship, or if the certificate is lost,
stolen, destroyed or defaced
(17) warning note to the effect that the certificate is not proof of ownership; address of owner
Q: What details about a ship are recorded on the back of COR ?
(1) Name and address of owner(s)

(2) The number of shares they own
(3) Instructions and warning notes (at the foot of back of COR)
Q: What is proper procedure when a ship’s COR is lost?

(I) If the COR is lost in the flag state:
• inform owners.
• the owners apply to the Registrar on the proper form for a duplicate COR.
(II) If the COR is lost abroad, the master should:
• make declaration to a proper officer that COR is lost, giving names and descriptions.
• apply to the proper officer for a Provisional Certificate of Registry.
• the Provisional Certificate must be delivered up to the Registrar after arrival at flag state and the
Registrar will then issue a new COR.
TYPES OF SHIP REGISTER (Flag Types)
Q: What are the various types of ship register?

(2) National Register
(3) Flag of Convenience
(4) Second Register
(5) Bareboat Charter Register

Q: What is a National Register?
 a register where there is a genuine link between the flag State and the owner or operator.
 is also known as 'closed register' and 'first register'.
Q: What is a Flag of Convenience?

 a flag under which there needs to be no genuine link between the flag State and the beneficial
ownership of the vessel.
 ITF Fair Practices Committee decides which flags are FOCs and which are not.( ITF:
International Transport workers’ Federation)
 is also known as 'Flag of Necessity' or 'Open Register' or 'Free Flag'.
 the advantages of a flag of convenience are:
(1) Foreign corporations can register a ship without being established in the territory;
(2) Low formation costs;
(3) The beneficial ownership of the ship may remain anonymous;
(4) Low taxation and other fiscal incentives;
(5) No crew nationality or employment requirements;
(6) Relaxed ship age limit
(7) No minimum ship tonnage requirement
(8) Dual registry is allowed in some cases;
(9) All classification societies permitted to conduct surveys;
(10) Speedy and simple registration procedures.
Q: What is a Second Register?

 Registers which in some cases are established under separate legislation as a second register in
the 'parent' state and in other cases are established in an offshore territory with legal links to the
'parent' state.
 Second Register is different from FOC in that – while manning, taxation and other laws are
often simplified, ship owners must still have a genuine link with the flag State.
 is also known as 'offshore register' and 'international ship register'.
Q: What is Bareboat Charter Register?

 For the duration of the bareboat charter, the vessel is entered on the registry of the bareboat
charterer's State and flies that State's flag, whilst retaining her primary registration.
 It is sometimes known as 'dual register'.
INCOTERMS
 A set of uniform rules which codify the interpretation of trade terms defining the obligations and
rights of the seller and buyer in an international sale of goods transaction;
 INCOTERMS are published by the International Chamber of Commerce;
 INCOTERMS enable for a sale contract to be accomplished in three letters;

FOB (Free onboard)
- Means Free On Board at named port of shipment (loading port); (eg, FOB “Liverpool)
- Based on the port of loading.
- Seller must supply the goods and documents to that port on board the vessel named by buyer on the
date or within period stipulated:
- The seller must bear all costs and risks of the goods until they have passed the ship’s rail, including
export charges and taxes;
- The seller give sufficient information to buyer to arrange insurance;
- The buyer must nominate the carrier, loading berth and loading dates;
- FOB invoice price is lower than the CIF price;
FAS (Free Alongside)
- The seller’s duty is completed when he has delivered the goods, alongside vessel at named
port of shipment. Seller is responsible for export clearance.
- Title and risk pass to buyer alongside ship. Further costs of loading, stowing and trimming
are then the buyer’s account.
CIF (Cost, Insurance and Freight)

- Means Cost, Insurance and Freight paid to a named port of discharge;
- Based on the port of discharge;
- The seller must pay all costs including marine insurance and freight necessary
- Risks passes from seller to buyer when the goods cross the ship’s rail at the loading port;
- Seller must provide the buyer with clean, negotiable bills of lading, an invoice and an insurance policy;
- Title in the goods only passes when documents are taken up by buyer;
- The buyer bears all costs and charges excluding freight, marine insurance and unloading costs unless
included in the freight;
- CIF goods normally cost more than FOB goods;
CFR (‘Cost and Freight’)
- Seller delivers goods when they pass ship’s rail at named loading port and must pay costs
and freight necessary to bring goods to named port of destination.
- Buyer bears all additional costs and risks after goods have been delivered over ship’s rail at
loading port. Title and risk pass to buyer when goods delivered on board ship.
CONTRACT
Q: What is contract? What are some examples of shipping related contracts?
- A legally binding agreement between two parties.
- It need not be in writing.
- E.g. A crew agreement, a charter party, B.L.
Q: What are the elements of contract?

- Offer
- Acceptance
- Intention to create legal relations
- Capacity to contract.

Q: What is a condition of contract?
- A Contractual term that goes right to the roots of contract.
- E.g. In voyage charter, vessel arrives at agreed loading port not later than the cancelling date.
Q: What is a warranty of contract?

- A contractual term less essential than condition.
- E.g. C/P usually contains speed warranty & Tanker C/P contains pumping warranty.
Q: What is an express term in a contract?

A contractual term that has been agreed by parties in words, either in writing or orally. The terms of a
crew agreement or a charter party are express terms.
Q: What is an implied term in a contract?

A contractual term that is not agreed by parties in words, but is deemed to exist in the contract because
of some statutory requirement. Eg; There is an implied term in a contract of carriage of goods by sea that
the carrier will provide a seaworthy ship.
Q: What is “discharge of contract” and how may contracts be discharged?

Discharge means termination of the contract. Contract may be discharged by
(1) performance
(2) agreement
(3) frustration.
(4) breach
Q: What is discharge by performance?

The carrying out by each party of their contractual obligations. This is what happen in the vast
majority of contracts.
Q: What is discharge by agreement?

The agreement of both parties that their obligations will be waived. Eg; ship owner and charterer
mutually agree to cancel a charter because of non-availability of cargo.
Q: What is discharge by frustration?

Where something occurs that prevents the contract from performing but is not fault of either
party.
Q: What is discharge by breach?

Where one party repudiate his obligation or disables himself from performing his part of the
contract or fails to perform his part of the contract on agreed date.
Q: When can a contract be withdrawn?

The common law right to terminate is available to all parties, regardless of a termination clause.
The right to terminate under common law exists if there has been a breach of contract, e.g. one
party refuses to meet their minimum obligations.

AGENT
Q: What is Agent?
A person who acts on behalf of another in such a way as to affect the legal position. Eg;
shipbrokers, port agents, shipmasters (in certain circumstances)
Q: What is special Agent?

- An agent appointed for a specific act, e.g. fixing a ship on charter or selling a ship.
- Ship master is special agent for signing B.L and engagement & discharge of crewmember.
Q: What is a general Agent?

- An agent with authority to perform all of the principle's functions.
- Some ships’ agents are general agent for one or more company.
STABILITY
Q: What is optimum GM?
The optimum metacentric height for a ship depends on several factors, including the vessel's
size, shape, weight, expected sea conditions, and the type of cargo being transported. Optimum
GM is the metacentric height which cause neither stiff nor tender. Generally, a metacentric height
of between 0.5 to 1.0 meters is optimum for most sea vessels.
0.8 × 𝐵 2
GM=( )
𝑇
B= Beam of the vessel(m)
T= Rolling period (Sec)
Rolling period of 15 to 25 seconds would generally be acceptable for a ship at sea.
Q: How to keep optimum GM?
The effective centre of gravity of the ship should be raised within that ship to avoid the stiff
and the effective centre of gravity of the ship should be lowered to avoid the tender.
Stiff
GM is large. (Eg; 2m to 3m)
Rolling period is as low as 8 sec.
Tender
GM is small. (Eg; 0.16m to 0.2m)
Rolling period is 25 sec to 35 sec.

Q: What is upthrust?
When the stern post of the ship landed on the block, part of weight of the ship is being borne
by block and this creates an upthrust. The upthrust causes a virtual loss in metacentric height.
MCTC × t
P= (During critical period)
𝑙
P = Reduction in draft (cm) × TPC (After taking block overall)
Q: What is critical period?

The interval of time between the stern post landing on the blocks and the ship taking the blocks
overall is referred to as the critical period.
Q: How to reduce critical period?
To reduce critical period, trim must be slightly by the stern.
Q: How to calculate virtual loss of GM during dry docking?
P × KM
𝑀𝑀1 = 𝑊
P × KG
𝐺𝐺1 = (𝑊−𝑃)

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THE SHIPMASTER’S BUSINESS

Q: In what circumstances should a shipmaster note protest?

Q: How should a shipmaster go about noting protest?

CMNA MASTER (CLASS – 1) Page - 1

Q: In what circumstances would it be appropriate for a master to issue a letter of protest?

Q: In what circumstances might a shipmaster receive a Letter of Protest?

CMNA MASTER (CLASS – 1) Page - 2

solemn declaration written communication recording

Sworn statement Not sworn statement

made by a shipmaster made by a authorized person

Supporting documents are required Supporting documents not required

Signature of witness may be required Signature of witness not required

Signature of recipient is not required Signature of recipient is required

made Issue or receive

Q: What is Letter of Indemnity (back letter)?

CMNA MASTER (CLASS – 1) Page - 3

Q: In what circumstances might a letter of indemnity be offered to the ship or carrier in

Q: In what circumstances, should an offered letter of indemnity never be accepted?

Q: Who will give LOI at loading port?

Q: Who will give LOI at discharging port?

Q; What are Marine Losses?

Q: What are Actual total losses?

CMNA MASTER (CLASS – 1) Page - 4

Q; What is Particular Average (P.A)?

Q: What is General Average (G.A)?

PA contribution by a particular insurer. GA contribution by all parties.

1. Grounding/Stranding damage 1. Beaching to prevent sinking

CMNA MASTER (CLASS – 1) Page - 5

1. The sacrifice or expenditure must be extraordinary.

Q; What is meant by “ extraordinary sacrifice or expenditure?

Q; What is meant by “ reasonable sacrifice or expenditure?

Q; What is meant by “ intentional or voluntary act” ?

Q; What is meant by “peril in general average” ?

CMNA MASTER (CLASS – 1) Page - 6

Q; What sacrifices might qualify as G.A sacrifices?

1. Damaging engine, propeller or hull in refloating operations.

Q; What expenditure might qualify as G.A expenditure?

Constructed total losses

Three principles of insurance

CMNA MASTER (CLASS – 1) Page - 7

(2) Insurable interest

 The insurable interest of an assured is limited to the amount of actual loss.

 Simplest form of insurable interest is ownership of the subject matter insured.

(3) Utmost good faith

Sister ship Clause (Marine Insurance)

CMNA MASTER (CLASS – 1) Page - 8

Franchise Clause (Marine Insurance)

 There are two kinds of franchise:

(1) Deductible Franchise (JANSEN Clause)

(2) Non-deductible Franchise

P & I Clubs (Mutual Insurance)

CMNA MASTER (CLASS – 1) Page - 9

 Certificates issued by P & I

Q: What are the chief types of lien of interest to shipmasters?

CMNA MASTER (CLASS – 1) Page - 10

Q: What is possessory lien?

Q: What is a particular lien?

Q: What is a general lien?

Ship'smaster Business Q & A

Ship'smaster Business Q & A

Ship'smaster Business Q & A