BLAW 497

CIF contracts

"cost, insurance, and freight" under one of the oldest and most typical variations, the seller must not only tender a bill of lading to the buyer for payment but also provide marine insurance on the goods and prepay the freight charges to the foreign port

bill of lading 3 roles

1. it is a receipt for the goods from the carrier, indicating any damage to the goods that was visible or apparent at the time of loading 2. it is the contract o carriage between the shipper and the carrier 3. it is the document of title to the goods described in it

Bailment relationship

Documents of title are credited out of a special bailment relationship between the opener of personal property, the bailor, and one to who its possession is entrusted, the bailee

non-vessel operating common carriers

NVOCCs act as freight consolidators for small shipments, permitting them o take advantage of lower freight rates

special drawing rights

SDRs represent an amount equal to a mix of currency values *the euro, yen, pound, and dollar developed by the IMF

errors in navigation

a carrier is not liable for errors in navigation or in managing the ship, even if the crew's negligence causes the ship to collide or run aground

specially to cover clause

a shipper who desires additional cover can purchase it from the insurer at an added charge

Open Account

all buyers would like to buy on open credit terms, or on open account. with open account terms, the seller granted an extended credit period for the buyer to pay

Payment Risk

also called credit risk is the risk to the seller that the buyer will fail to pay as promised

maritime torts

applied only if the tort occurred and the injury was sustained on navigable waters

freight forwarders

are federally licensed individuals who act as agents for sellers. they handle their foreign shipments, book transportation, prepare documents and customs forms, and perform other functions

multimodel transport operators/ combined transport operators

are firms that arrange for cargo to be sent via several different carriers in one journey

ships

are large vessels intended to carry cargo or passengers

trade terms

are usually expressed in the form of symbols they are shorthand method that permits the parties to express their agreement quickly with out confusion

Rhodian law

came from the customs and practices of the sea trade. there is no written record, it has been referred to in the written writing of other maritime codes that it influenced

dry bulk ships

carrying coal, ore , and other minerals, grains, and cereals, steel, forest products, fertilizers

ro ro shps

carrying vehicles, aircraft,boats and heavy equipment

perils clause

covers the basic risk of an ocean voyage

D terms

destination contracts

Incoterms 2010

eleven trade terms classified into 4 groups according to relative responsibilities of each party and to the point at which the risk of loss passes from seller to buyer

vessel

every description of watercraft or other artificial contrivance used, or capable being used, as a means of transportation on water

tankers

for oils, chemicals, and other liquids

fortuitous losses

fortuitous is a concept that runs throughout insurance law it means that he loss occurred by chance or accident and cow not have reasonably have been predicted

destination contract

if the contract calls for the seller to deliver the goods to a particular destination, such as the buyer's city or place of business, the contract is a destination contract

multimodel transportation

if the transport is executed using more than one mode of transportation

maritime contracts

include ocean bills of lading, marine insurance contracts, contracts for towing or wharfage (a charge for the use of wharf or dock), contracts for fuel, supplies for or repairs to vessels, contracts to pilot or guide vessels through harbors or canals, and contracts with longshoremen or stevedores

navigable waters

includes not only the oceans and seas but also large lakes , rivers, and waterways, regardless of size, that are used or capable of being used for commercial activity

C terms

indicate that the seller is responsible for certain costs after the delivery of goods to the carrier FOB, risk of loss passes to the buyer when the goods are on board the vessel

bill of lading

is a document of title that an ocean carrier issues to a shipper upon receiving goods for transport

Document of title

is a document that evidences the ownership of goods it represents. it entitles the person who possesses the document to possess the goods

peril of the sea

is a fortuitous action of the sea or water of sufficient force to overcome the strength of a seaworthy ship or the diligence and skill of a seaworthy crew

genreal average

is a loss that results when extraordinary expense or losses are incurred in saving the vessel or its cargo from danger at sea

Bailment

is a relationship involving the separation of ownership and possession of personal property. the bailee receives the property on the condition that it will care for an return the property in the condition in which it was given or will transfer or dispose of it in accordance with the terms of the bailee's agreement with the bailor

Documentary Sale

is a type of contract for the sale of goods in which possession and ownership of the goods are transferred from seller to buyer through negotiation and delivery of a negotiable document of title issued by an ocean carrier

house air waybill

is one issued by a freight forwarder to the shipper (thus representing a contract between them), and is also used where the shipments of several shippers are being consolidated by the forwarder to one destination

master air waybill

is one issued directly to a shipper by an air carrier

clean bill of lading

is one that contains no notations by the carrier that indicate any visible damage to the goods, packages, drums, or other containers being loaded

particular average

is partial loss to the insured's cargo. many insurance policies limit the insurer's liability for particular average losses

containerized ocean cargo

is the fastest growing mode of ocean transportation.

freight

is the price charged to transport cargo

The documentary collection

is the process by which banking institutions serve as intermediaries between seller and buyer to handle the exchange of the bill of lading for payment

Delivery Risk

is the risk to the buyer that the seller will fail to ship the goods as called for in the contract

cargo

is the term for goods carried aboard ships

Negotiation

is the transfer of document of title by its owner to another in a manner that passes title to the document, title to the goods, and the right to claim the goods from the issuer of the document

received- for - shipment bill of lading

issued by a carrier only upon having received goods for transport

open cargo policies

many shippers who do large values of business overseas maintain this. it offers the convenience and protection of covering all shipments by the shipper of certain types of goods to certain destinations and over specified routes

air waybills

most air transport is handled through nonnegotiable air waybills issued by cargo carriers. the carrier will make delivery only to the consignee named in the bill

break-bulk

or general cargo ships where goods are stowed in individual containers or on pallets in the ship's hold

forwarder's receipts

or house bills of lading (called consignment notes in some countries) are issued when forwarders receive cargo for shipment

A holder by due negotiation

otherwise referred to as a good-faith purchaser, is one who purchases a negotiable document 1. for value 2. in good faith and without any notice of any adverse claim against it, and 3. in the ordinary course of business or financing

electronic data interchange

paper transport documents are rapidly being replaced by EDI whereby shipping data is transmitted over the internet using one of several standards

E terms

place the lowest amount of responsibility on the seller

maritime courts

private courts- developed in the port cities, far from the dictates of distant kinds and rulers

maritime law

refers to that body of law within the admiralty jurisdiction of court that governs private rights and obligations arising out of the pertain of vessels on navigable waters or in maritime commerce . they rendered judgments based on the custom and practice of mariners, ship owners, and merchants who often traveled on the very ships that carried their cargos

Transaction Risk

refers to the risks facing the buyer and seller when they move money and goods in an international sales transaction

reefer ships

refrigerated units

Montreal Convention

replaces the outdated warsaw convention

F terms

seller must deliver the goods to the designated point of departure free of expense or risk to the buyer

negotiable instruments

serve as a substitute for money, whereas negotiable documents are used to move goods and to transfer their ownership and possession (checks and promissory notes)

consignor

shipper

on-board bill of lading

signed by the ship's master or other agent of the carrier, states that the goods have actually been loaded aboard a certain vessel

shipment contract

the risk of loss or damage to the goods passes to the buyer when the goods are given to the first carrier- be it truck, airline, or ocean

collecting bank

the seller's bank forwards the drat and documents to a collecting bank in the buyers country, with instructions to release the documents to the buyer only on payment of the draft

The international air transport association

trade association of airlines, expects the most air waybills will be electronic by 2016

Constructive delivery

when a negotiable document of title is sold in the ordinary course of trade, the seller is said to have made a constructive delivery of the goods to the seller