Ocean Shipping Terms

SECTION 1: DEFINITIONS

1. “Carrier” shall mean any carrier, master, operator, agent or other party who agrees to transport or agrees to accept responsibility for the goods at any stage of the voyage.

2. “Shipper” shall mean the person who contracts with the Carrier.

3. “Goods” shall mean the goods described in the Bill of Lading or other documents evidencing or describing goods accepted or to be transported by the vessel.

4. “Voyage” shall mean the voyage of the vessel described in the Bill of Lading or other document evidencing goods accepted or to be transported by the vessel.

SECTION 2: LIABILITY OF CARRIER

1. The Carrier shall be liable for any loss, damage or delay to goods occurring during the Voyage until the goods’ receipt by the Shipper is acknowledged in writing.

2. In case of such occurrence, the Carrier shall not be liable for loss or damage caused by any of the following:

a) Latent defects in the goods, their packaging or loading;

b) Shortage or incorrect marking, packing or packing materials;

c) Deficiency of or damage to goods due to their inherent vice;

d) Strike, lockout, stoppage or restraint of labour, whether partial or general;

e) Weather, ice, fire, earthquakes, floods, or any other acts of God;

f) War or acts of public enemies.

3. In cases of delay, partial or general detention before or after loading, or deviation in order to facilitate consigning, loading, unloading or delivery of goods, the Carrier shall be liable only for reasonable costs incurred, or loss suffered directly as a result of such deviation.

SECTION 3: LIABILITY OF SHIPPER

1. The Shipper warrants to the Carrier that all statements and representations made concerning the goods are true and correct, that the correct quantity and description of the goods has been loaded on the vessel and that no cargo, excepting trade samples of low value, has been concealed on board the vessel.

2. The Shipper will indemnify the Carrier from liability as provided in Section 2 as well as from any actual or alleged liability for damages sustained in the transport of any goods for which proper notice and information have been given by the Shipper and for which the Shipper has received proper compensation.

3. The Shipper will be liable for the full freight rate of each item of any cargo unloaded from the vessel in case of improper or fraudulent representation or misdescription of such cargo by the Shipper.

SECTION 4: ADVANCES AND OFF-SETTLEMENT

1. The Carrier may ask for advances and/or off-settlement to cover its expenses in respect of the transport of and dealing with the goods.

2. The Carrier shall not delay or refuse to return empty containers, or to accept delivery of containers, where the Shipper has not made the agreed or current advance or off-settlement or has not provided the agreed or customary form of guarantee in respect of any other form of payment.

3. Payment of advances and/or off-settlement to the Carrier shall not affect the liability of either party under these Terms and Conditions.

SECTION 5: MIS-DELIVERY

1. In the case of a mis-delivery, the Carrier shall act with reasonable diligence to identify and, if possible, remedy the mis-delivery.

2. Where the Carrier is unable to remedy the mis-delivery, the Carrier shall refund the full cost of the goods and/or the cost of any associated transport costs to the Shipper within a reasonable time.

3. If the mis-delivery is caused by the negligence of either the Carrier, Shipper, stevedore or any other person, the Carrier shall only be liable for refunding the actual costs of the goods and/or the associated transport costs to the Shipper under these Terms and Conditions.

SECTION 6: WITHDRAWAL OF CHARGES

1. The Carrier shall have the right to withdraw any freight and/or other charges, in whole or in part, where the Shipper has instructed the vessel to postpone sailing, dock or call at ports not included in the voyage or to perform additional services not mentioned at the time the contract was made.

2. The Carrier shall not be liable to refund any freight and/or other charges where the movements of the vessel due to causes specified in Section 2 of these Terms and Conditions has resulted in a loss of freight and/or other charges.

SECTION 7: NOTICES

1. The Shipper shall ensure that all notices in respect of the goods or the voyage are given to the Carrier in writing.

2. The Shipper shall ensure that all notices of claim sent to the Carrier are accompanied by documentary evidence of the relevant details.

3. The Carrier shall not be liable for any losses or damages incurred by the Shipper which would not have arisen had the Shipper given a notice in writing no more than 14 days after the date of the occurrence.

SECTION 8: GENERAL PROVISIONS

1. These Terms and Conditions shall be governed by the laws of the country in which the vessel is registered.

2. The exclusion of any clause from these Terms and Conditions shall not affect the validity of the remaining clauses.

3. English shall be the language used in all communication.

International Ocean Freight Terms

International ocean freight involves transporting goods by sea from one country to another. The correct use of international ocean freights terms and conditions will ensure the secure transport of goods from one country to another.

The charter party is an important element of international ocean freight. The charter party is a contract between shipper and carrier that outlines the terms of service, such as the type of vessel, size, loading and unloading ports, transit or voyage details, etc. Other important terms used in international ocean freight are Bill of Lading (B/L) and Waybill. The B/L confirms receipt of goods to the shipper and serves as an evidence of legal ownership of the goods. The Waybill is an agreement between the shipper and carrier and contains similar details as a B/L, but it is not a document of title.

Freight forwarders are also a key element of international ocean freight. The freight forwarder is a company which specializes in the transportation of goods. They arrange for the packaging of the goods, handle the documentation involved in the shipment and often provide services such as insurance and customs clearance.

The final document when shipping goods is a Certificate of Origin. The certificate is issued by the country of origin and serves as evidence of the country in which the goods originated. This is essential for when goods arrive for customs clearance, as it identifies the country of origin which can determine the applicable duty or taxes.

International ocean freight is a complex process involving the cooperation of multiple parties to ensure goods arrive safely. The above terms and documents are essential when shipping goods internationally by sea and understanding their purpose can help ensure smooth shipping of goods.