Keyset Shipbrokers Ltd.

Chairman: P.S. Keyser Directors: L.M. Nosome, R.N. Landon

123-5 Lowland Street, London EC1 2RH

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.

Dealers House

Cantley Street

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.

Yours sincerely,

B. Marston

Charter Department

11.7.9

Shipbroker's reply

Questions

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?

11.8

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.

11.9

Words to remember

road/rail/air transport

transhipment

haulage (trucking)

a freight company

an airline

a forwarding agent

a clearing agent

a private carrier

a consignor

a consignee

a checker

a packer

in transit

a lorry

a van

a container

a passenger liner

a passenger/cargo vessel

a tramp

a tanker

a bulk carrier

a container vessel

roll-on roll-off facilities

a ferry

a barge

a lighter

a goods depot

a terminal

a consignment

a shipment

cargo

a bulk commodity

perishable goods

size

volume (cubic m)

weight (cubic kg)

a despatch note

a consignment note

an air waybill

an advice note

instructions for despatch form

freight charges

customs clearance and handling charges

'contents have been examined'

'contents not examined'

to charter a ship

a shipbroker

The Shipping Conference

The Baltic Exchange

voyage charter charges

time charter charges

mixed charter

charter party

tonnage value

'groupage rates'

export cargo shipping instructions

export cargo packing instructions

a shipping mark

a bill of lading

'clean'/'dirty'/'claused' bill of lading

to order

a shipped bill

freight pre-paid

a shipping note

a rail consignment note

a dock receipt

a wharfinger's receipt

insurance

a policy

door-to-door responsibility

'carrier's risk'

all risks

a claim

compensation

damage

negligence

to inspect goods

fragile

Hague Rules

Acts of War

force majeure

negligence

inherent vice

International Air Transport Association

Insurance

Insurance procedures; fire and accident insurance and claims; marine insurance: Lloyd's of London; marine insurance policies and claims

12.1

Date: 2016-01-03; view: 1015