Answers to Test your shipping knowledge – Week 01/2009

1) What is the implication of the Place of Receipt and Final Destination in a bill of lading..??

(For the carrier (shipping line) the inclusion of Place of Receipt and Final Destination means that the carrier is liable for the safe movement of the cargo from the Place of Receipt to Final Destination.. This will include the multimodal movement including rail, road, feeder etc.. For example if the Place of Receipt is shown as Johannesburg (inland point) and Final Destination is shown as Bengaluru (inland point), the carrier is responsible to pick up the cargo in Johannesburg and deliver it to Bengaluru where the mode of transport could include Road ==> Rail ==> Sea ==> Rail ==> Road etc.. )

2) What is the implication of the term CY after the final destination or place of receipt in a bill of lading..??

(CY = Container Yard which in some cases maybe an area different to the one where the container has been discharged from the ship.. If the term CY is shown on the bill of lading, it is the carriers responsibility to park the container at the CY at any additional cost to them..)

3) What is : FIO, FILO, LIFO, FLT..

(These terms are generally used in bulk/break bulk shipments :

FIO : Free In/Out which when used from a liners perspective means that the client (shipper or consignee) are responsible for the loading (In) and discharging (Out) costs at the Port of Load and Port of Discharge respectively.. The lines responsibility and costs commences/ceases when the cargo passes the ships rail..

FILO : Free In/Liner Out which when used from a liners perspective means that the shipper is responsible for the loading (In) costs at the Port of Load and the Liner (carrier) is responsible for the discharging (Out) costs at the Port of Discharge..

LIFO : Liner In/Free Out which when used from a liners perspective means that the liner is responsible for the loading (In) costs at the Port of Load and the consignee is responsible for the discharging (Out) costs at the Port of Discharge..

FLT : Full Liner Terms which when used from a liners perspective means that the liner is responsible for the loading (In) and discharging (Out) costs at the Port of Load and Port of Discharge and basically the liners responsibility and costs commence/ceases at the shoreside where the cargo is made available..)

4) What is the difference between a Max Payload & a Max Gross weight of a container..??

(Payload is the maximum permitted weight of cargo and packing material allowed to be packed inside a container.. Gross Weight is the weight of the cargo plus the Tare Weight of the container.. )

5) What is the maximum weight you can pack in a 20’ gp & 40’ gp..??

(In GENERAL the classified weight is 21 tons in a 20′ gp and 26 tons in a 40′gp.. However, this could vary from shipping line to shipping line or from port to port specially where weight restrictions apply.. Example as per the ruling Indian port do not allow cargo weighing more than 23 tons gross on the roads.. Hence the individual weight restrictions of each of the ports must be respected and followed..)

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  1. Pingback: What exactly is the LINER OUT CHARGE.. Shipping Lines are quoting this for cargo to West Africa..?? | Shipping and Freight Resource

  2. My role as shipper (manufacturer of fibre board).

    Carrier/ Charterer has one clause as that they claim to escape them from this port storage charges:-

    “If vessel cannot arrive to loading port within/ on laycan date, warehouse storage charges for each day delay will be take effect from the last day of stated laycan & will be for carrier account”.

    Note: Vessel in loading port 3 days before last laycan date as per stated in agreement. Mean time, our cargo are ready/ stand by in Port warehouse just waiting for vessel arrive & can proceed loading.

    Note: Stop loading due to bad weather (fibreboard is high sensitve to water & moisture)

    Thanks.

    • Hi Jenniefer, are you the charterer as well..?? Generally the charter parties will have clauses to cover against acts of God such as weather.. In this case as you also claim that the cargo is sensitive to weather, the delays are expected..

  3. Hi Sir,

    Break Bulk Terms of “Full Liners Terms”.

    Please advise whether carrier will responsible & obligation for any port storage charges (at loading port) due to vessel late/ delay depature from loading port (root cause: bad weather & port loading facility such as forklift/ crane was inefficient & slow). The Vessel was took 10 days for cargo loading complexion.

    Note: Vessel arrived to loading port within time frame agreed as per in “Fixture Note”. Mean time, shipper had delivered cargo to port on time (within free port stroage period granted by port authority) as well.

    • Hi Jenniefer, this depends on many things.. Firstly FLT is related to freight and the cost of operation and generally not linked to “demurrage” or “detention”.. Your case below falls under either Demurrage or Detention..

      In maritime law, demurrage is the amount identified in a charter contract as damages payable to a shipowner as compensation for the detention of a ship beyond the time specified by a charter party for loading and unloading or for sailing..

      Detention is penalty if cargo is not ready when ship arrives for working (1st day of Laycan).. If the cargo is ready there is no detention..

      In your case you mentioned that the delay was due to bad weather which generally exempts the Ship Owner from paying anything.. Regarding the delay due to bad operating conditions, that is subject to what the charter party is fixed as..

      What is your role in this case.. Are you the charterer..??

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