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