4.3. Safeguarding of cargo Flashcards
(a) Describe the Master’s responsibilities regarding the care of cargo
a) The Master must perform the voyage as agreed by the contract of carriage as stated in the Bill of Lading or Charter Party. The Master is responsible to properly load, handle, stow, carry, keep, care for and discharge the goods carried by means of proper cargo care.
b) This will include operations such as ventilation, sounding of bilges and any other special measures required for that particular cargo.
c) If the Master has any enquiries regarding a specific cargo he may consult the P&I Club manager.
d) A booklet, ‘Careful to Carry’ which is published by the UK P&I Club contains useful information on the proper carriage of problematic cargoes.
e) The Master must ensure that if different types of cargo are carried they must be compatible.
f) The type of cargo should also be suitable for the ship.
g) The Master must ensure that his vessel is seaworthy prior to departing port as this will affect subsequent claims in the event of damage or loss.
(b) Describe the legal implications if cargo is short landed or transhipped
i. Dependant on the terms of the Carriage Contract between cargo owner and charterer/ ship owner.
ii. Note protest including relevant details of cargo and circumstances of short-landing, as well as any other information regarded as relevant.
iii. Inform owner and provide details as mentioned above. The outcome of subsequent claims against the owner will depend on the accuracy of details provided.
iv. Inform P&I.
v. Inform agents.
(c) Describe the hazards to cargo, ship and personnel when discharging cargo in dry- dock
a) Change to hull stresses from discharged cargo or changes in point loading.
b) It may not be possible to return the vessel to the original condition prior to docking, so the new stability calculation should be done as accurately as possible.
c) A dry-dock is not a dedicated discharge facility, with some cargoes being difficult to discharge and transport. Space in the dry-dock area would also be limited resulting in a delayed discharge time.
d) Dry dock personnel should be kept clear of any cargo operations to reduce the chance of injury.
e) Any hot work permits requested during cargo discharge should be carefully checked as the cargo may be volatile and hot work may need to be postponed.
f) The sequence of unloading should be agreed upon with the Dock Master prior to operations commencing. A vessel representative should be in attendance at all times to ensure there is no damage to cargo which may lead to subsequent claims.
(d) Demonstrate an in depth knowledge of refrigerated cargoes, volatile cargoes and other dangerous or susceptible cargoes
a) Reefer Cargoes –
Check condition of containers, leads and door seals.
Check voltage and defrost period is correctly set as per instructions and vessel supply.
Check temperature logger once connected and ensure temperature recorder card is inserted correctly.
Check manifest for any specific instructions.
Ensure ventilation times and carriage temperatures are followed.
b) Volatile Cargoes –
Consult IMDG Code regarding stowage, segregation and compatibility.
All DG commodities to be correctly labelled, packaged and manifested.
Manifest to contain correct product name and IMDG Class, as well as contact details in the event of an emergency.
MFAG and EMS details should also be correctly recorded.
Packing Declarations must be kept onboard the vessel for the voyage duration.
(e) Demonstrate a knowledge of commercial cargo terms and functions of bills of lading, letters of protest and letters of indemnity
a) Bills of Lading – Four main functions
1) A receipt from the carrier acknowledging that the
goods specified therein have been received onboard
the ship or another place under the vessels control.
2) A document of title to the goods specified therein. 3) Evidence of the existence of a contract of carriage. 4) Receipt of freight paid if stamped so.
b) A Bill of Lading is a negotiable document and should reflect truthful details of the shipper –
Consignee
Carrying Vessel
Loading port and port of intended discharge
Nature of the goods
Marks
Freight payable
Number of Bills issued and date and place of their issue ♣ Information on a Bill of Lading – 1. Reference Number 2. Shippers name & address 3. Consignee name & address 4. Notifying Party’s name & address 5. Port of loading and date 6. Port of intended discharge 7. Vessels name 8. Number and type of packages 9. Contents 10. Weight/ Volume 11. Any leading marks 12. Statement reflecting that the goods were received in good order 13. Number of original Bills of Lading issued 14. Signature of Carrier 15. Copies stamped – COPY – NON – NEGOTIABLE
Notes of Protest:
♣ Always completed within 24 hours of arrival.
I. A Note of Protest may help reduce claims of damage or cargo loss against the owner.
II. It is a solemn declaration made on oath by the ship’s Master that circumstances beyond his control have or may have given rise to the loss and or damage to his ship or its cargo.
III. A protest (without an extension) is a simple statement of fact without detail.
IV. When noting a protest always reserve the right to an extension so that when all of the facts have come to light (eg. Surveyors reports) they may be added to the original protest.
V. The note of protest must be signed and witnessed in the presence of a lawyer of notary public.
VI. Three copies are issued, one for the owner, one for the ship and one for insurers.
♣ When to note protest:
- After every case involving General Average;
- After wind or sea conditions have damaged cargo;
- After wind or sea conditions have delayed arrival of
the vessel as agreed in the terms of the charter party; - After cargo is shipped in a condition likely to
deteriorate during the forthcoming voyage; - After the ship has sustained damage from any cause;
- After a consignee fails to discharge or take delivery of
the cargo.
Letter of Indemnity:
A letter of indemnity should not be signed. It is normally offered by the shipper to keep the bill of lading clean and should be passed by the Master to the ship owners/ charterers.
Commercial Cargo Terms:
♣ Mates Receipt
- Receipt for goods loaded, tallied and signed by
Chief Officer.
- Issued to shipper of goods.
- Shows accurate details of goods loaded onboard.
- Reference number, date, time, place of loading.
♣ Bareboat Charter
Contract to lease the vessel for a limited period, where the charterer acquires most of the rights of the ship owner. The owner places the vessel, without crew, at the complete disposal of the charterer. The charterer is liable for all costs except capital costs.
♣ Demise Charter
Bareboat charter hinged to a management contract, so that the ships’ owners manage the vessel on behalf of the charterers. (e.g. an oil company lets the ship owners take care of the management of the vessel, which is already in place, thereby not having to increase its’ own management team.)
♣ Time Charter
This is a contract for hire of a specific ship, over a specified period of time, complete with crew.
♣ Voyage Charter
An example is Cape Town to Durban once-off.
Ship owner is to:
- Supply a seaworthy ship to carry the cargo.
- Bring the ship to an agreed port at an agreed date.
- Load the cargo and carry it to an agreed destination.
- Discharge the cargo.
- Pay for all running and operating costs.
Charterer is to:
- Provide cargo at the agreed loading port at the
agreed date.
- Ensure all cargo arrives in the agreed laytime.
- Pay the agreed rate of freight.
- Pay for the loading and discharge if FIO terms have
been agreed.
♣ Cost of Insurance and Freight
The seller pays for all costs including insurance and freight to the named port of discharge. The risks pass from the seller to the buyer once the goods pass over the ships’ rail at the discharge port.
♣ Free Onboard
- The seller supplies the goods.
- The seller loads the goods onto the vessel within a
specified period of time.
- Seller bears all costs and risks until the goods pass
over the ships’ rail at the loading port.
- Buyer assumes risks once goods pass over the
ships’ rail.
- The seller must notify the buyer once goods have
been loaded.
- The buyer bears all costs including insurance and
freight once the goods pass over the ships’ rail at
the port of loading.
(f) Demonstrate the knowledge of P&I Clubs and the role they play to assist the owners
P&I generally insure ship owners and operators against 3rd Party liabilities not covered by Hull and Machinery Insurance. They also protect/ insure a quarter of the hull not covered by H&M.
A ships’ Master should contact the local correspondent of the P&I in any case in which the owners interests are threatened, particularly where there may be a legal liability to a third party.
I. Evidence required by P&I Clubs:
- Deck and Engine Room Logbooks
- Rough Logs or contemporary notes
- Masters reports
- Photographs or videos
- Accident report forms
- Print out of bridge and engine room data loggers
- Letters of protest
- Statements to lawyers
♣ Call P&I when:
- In a collision with another vessel / fixed / floating object
- When there has been any form of marine pollution
- When there was cargo damage during a voyage
- When any person onboard, has been injured
- When stowaways have been discovered onboard
- When the ship is detained, arrested or fined
- When a seaman has been left behind in port
- When there was a General Average act or sacrifice
- When in doubt as to the identity or authority of
surveyors, lawyers or other parties claiming to have
legal access to the ship.
