Reg No: London 818171 Telephone: 071 671 3829/01 6704211
VAT No: 31 4281563 Telex: 441359 KEYSH1P G
Fax: 071 671 9873
Mr D. Raven 10 July 20—
Putney & Raven Merchants Ltd.
London WC1 1AR
Dear Mr Raven,
You should have already received our fax in which we said that we had an option on a vessel, the MS Sheraton, which is docked in Melbourne at present. She has a cargo capacity of 7,000 tons and although she is larger than you wanted, her owners are willing to offer a part charter of her.
They have quoted £2.30 per ton which is a very competitive rate considering you will be sharing the cost, Please will you fax your decision as soon as possible? Thank you.
1. What does an' option' on a vessel mean?
2. Is the MS Sheraton exactly what Putney and Raven wanted?
3. Why is the chartering cost lower for this shipment?
4. Where is the ship at the moment?
5. Is the whole ship being chartered?
Points to remember
1. The method a consignor chooses to deliver his goods depends on whether his main consideration is speed, direct delivery, limiting handling, or economy, and this obviously relates to the type of consignment being sent.
2. Road haulage can be comparatively cheap when transporting relatively small consignments, and offers a door-to-door service. Rail freight services are competitive when shipping bulk goods, and are faster than road transport between terminals. Air transport offers the fastest service, but is restrictive on weight and volume, and can be the most expensive method of sending goods.
3. The 'consignment note' or 'waybill' is the main document used in road, rail, or air transport. It is a receipt, not a document of title, and therefore not negotiable. An 'advice note' is usually sent to the consignee to inform him that goods are being forwarded, but airlines, as a rule, inform the consignee themselves when the goods arrive.
3. There are various types of vessels available to carry different goods.
4. Their owners may belong to the Shipping Conference and will charge fixed rates for transporting goods.
5. Other vessels can be chartered, on a time or voyage basis or on a mixed charter, through shipbrokers on the Baltic Exchange who will negotiate rates for their clients.
6. The bill of lading is the main document used in shipping and may be 'clean' or 'dirty' ('claused'), which explains whether the goods were taken on board in perfect condition, or if something was wrong with them. Once the bill has been signed by the captain, it is known as a shipped bill and the shipping company will now accept responsibility in accordance with the clauses on the back of the document. If the bill is made 'to order' it becomes a negotiable document of title.
7 Containerization is a rapidly growing method of shipment, where goods are loaded into steel boxes which are taken to the docks and then loaded on to special vessels. Container companies use either combined transport bills of lading, or waybills, but also the usual documents in shipping including the bill of lading.
Words to remember
a freight company
a forwarding agent
a clearing agent
a private carrier
a passenger liner
a passenger/cargo vessel
a bulk carrier
a container vessel
roll-on roll-off facilities
a goods depot
a bulk commodity
volume (cubic m)
weight (cubic kg)
a despatch note
a consignment note
an air waybill
an advice note
instructions for despatch form
customs clearance and handling charges
'contents have been examined'
'contents not examined'
to charter a ship
The Shipping Conference
The Baltic Exchange
voyage charter charges
time charter charges
export cargo shipping instructions
export cargo packing instructions
a shipping mark
a bill of lading
'clean'/'dirty'/'claused' bill of lading
a shipped bill
a shipping note
a rail consignment note
a dock receipt
a wharfinger's receipt
to inspect goods
Acts of War
International Air Transport Association
Insurance procedures; fire and accident insurance and claims; marine insurance: Lloyd's of London; marine insurance policies and claims