Shipping Questions and Answers

Have a shipping and freight related question..?? You are at the right place.. You can ask your shipping and freight question using the form below and either myself or other readers, will answer your question..

If you know the answers to questions that others have posted below, please feel free to answer them (please refer to the question # when answering).. 


QUESTION FORM shipping questions and answers

 


SHIPPING QUESTIONS AND ANSWERS SO FAR


Q#11: While entering a charter party agreement whether any vessel owner would enter into a charter agreement with a company which is nominally formed entity with share capital of One GBP. Is it possible to charter/ hire vessel costing millions of dollars by such company with no financial standing.

I am sure that there must be some criteria to check whether the company chartering a vessel has a strong financial standing.

A#11: Normally when there is a request for fixture, one of the key questions that a ship owner will ask is the details of the charterer who will be signing the charter party.. This charterer needs to have some credible standing in the market and the owners will verify this info.. They may also require the cargo broker to stand surety if they recommend this new charterer.. An owner has to protect themselves after all, as there are a lot of unscrupulous elements in the market..

So to answer your question, the answer is NO, the owners do not normally enter into agreements like this, but may do so if there are some bank sureties, 100% freight payment in advance etc as the situation demands..


Q#10: When equipment has to be delivered in containers and Incoterms FCA delivery is required, is the seller responsible for the cost and supply of the containers or is the buyer responsible for providing the containers?

A#10: Under F-Terms like FCA, the seller’s obligation is limited to handing over the goods to the carrier nominated by the buyer and the seller has no obligation to contract for carriage..

Since the contract of carriage is done by the buyer and the cargo is shipped in containers, the containers will under normal circumstances be provided by the carrier that the buyer has contracted with.. If the buyer wants to use their own containers or wants shipper to use their own containers, it must be clearly specified in the sales contract..


Q#9(1): I am a ship operator and we have a vessel discharging in the port of Chittagong. There has been a significant delay in discharging due to the shortage of lighter vessels. However intermittently it has been raining as well. I know that if it is raining the laytime will not count as the cargo is grain. However there were no lighter barges previous to the rain and even after the rain. So will the laytime count or not? Which will get precedence, the rain or the lighter barges.

 A#9(1): in my opinion these are two different issues and if there were work stoppages due to these two different reasons, it must be recorded in the SOF accordingly at the time of calculation, the stoppages due to lack of lighter barges must be considered separately to that stoppages due to rain..

Q#9(2): Thank you for your prompt reply. However the question still persists. If both the events has occured at the same time ie it is raining as well as the lighter barges are also not available. So should the laytime be counted or not. Which event will get precedence. For example on 29th september it was raining between 1200-1800 hrs and the lighter barges are also not available from 1200-1800 hrs. If we tke rain into consideration, then laytime should not count. However if we take the absence of lighter barges into consideration, the laytime will count. So which of the events should gain precedence over other?

A#(2): If both these incidents happened at the EXACT same time then this would be a matter of discussion and agreement between both parties.. If for example the “rain” was recorded first and then the “lighter barge” shortage was recorded then the discussion may be different..


Q#8: I would like to ask you one major question that our company is currently facing. Please note that the Bill of Lading is a “straight bill” which expressly indicates the name of the consignee. The vessel cannot sail off the port because damaged cargo is on board the Vessel and the consignee refuses to discharge the damaged cargo. Is there an obligation of the consignee to discharge cargo even if the cargo is damaged?

A#8: What type of ship is it, what type of cargo and what type of damage and where, when and how did this damage happen..?? The bill of lading does not have anything to do with who discharges what, when, where and how.. It is only an “evidence” of the contract of carriage.. The contract of carriage determines who is responsible for what..


Q#7: if shipments are uncleared at POD due to some customs issue at destination? still shipper responsible ? D/o not issued and customer is taking it.

A#7: this depends on the shipping line and how bill of lading is consigned and what the Incoterms are..


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3 comments on “Shipping Questions and Answers”

  1. By adisu Reply

    I bought a couple of cars from Europe and they suppose to shipped the cars to Ethiopia; However, it took more than three times the normal shipping time mainly because the shipping company is using indirect shipping where each port asked as deposit for bill of lading. my question to you is, is there such thing as refundable deposit to get permission form the port?

    • By Hariesh Manaadiar

      Hello Adisu, I have not heard of transhipment ports asking for deposits.. There is regular service from Europe to Ethiopia via Djibouti.. Which shipping line have you used..??

  2. By BENROYSHAN S Reply

    Its my pleasure to be in this discussion. It should be very useful to understand the shipping related problems and the solution for in that.
    Thank you so much

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