Business Assignment

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1.

Option of the Charterer when the vessel arrive after the date of the
canceling date.
1. Still accept the ship for loading. The Charterer will be looking at the market to see if
they can find a more cost effective solution to their transportation needs.
(Usually the Charterer just keep quite, hoping to make a new contract, which having
better freight rate offer by the owner.)
2. Eject the ship for loading only on or after the cancelling date.
Charterer will not be entitled to cancel the charter before the stated cancelling date,
even when it is obvious that the vessel cannot arrive at the loading port by this date.
Charterer cannot be made to declare whether they intend to cancel or not before the
vessel arrives at the loading port.
Even after the canceling date has passed, owner can still not compel Charterers to
declare whether or not they will load the vessel.
To avoid delay to the vessel in awaiting Charterers decision on cancellation, some C/Ps
have and extension to the Cancelling Clause compelling Charterers to declare within a
specified time whether or not they elect to cancel after being informed of the vessels
late arrival.

2. I will still proceed in full sea speed to make my best ETA on 1000 1st April
2001, base on the following reason: 1. Charterer has to declare whether he/she will accept the vessel or not when the vessel
become an arrived ship. If he accepts, that is fine, we get the job, things going on. If
he does not accept, at least we find out, then the ship can look for the other fixture.
2. For sure the cargo is still stood there and need somebody to load, what the Charterer
need is to deliver his cargo to his customer also, most probably he is also in hurry to
ship the cargo, he need the ship as soon as possible to solve his own problem.

Answer to Question No 3.
1. Inform local agent with the detail of the crew who is about to be repatriate, so they can
arrange the transport, medical, doctor, hotel, flight for him.
2. Complete the details in seamans discharge and return it to him and give him back all the
other documents, which are belong to him.
3. Complete the discharge detail in the crew agreement, - List of Crew and Signatures of
Seamen who are Parties to the Crew Agreement ALC (a), (place, date, reason for discharge)
4. Have the seaman sign off in the upper grey space on the List of Crew and Signatures of
Seamen who are Parties to the Crew Agreement ALC (a)
5. Sign in the lower grey space as witness to the seamans signature.
6. If he seaman requests, give him a certificate as to the quality of his work or that he has fully
discharge his obligations under his contract.
7. Salary of the crew computed and the crew should sign the portage bill, issue him some
money if he request, other the salary will settle with the leave pay together.
7. Inform the company within 3 days after discharge.
8. Seaman may normally leave vessel after health and custom clearance.
9. Make and sign the Official Log Book (narrative section) entry recording the place, date and
time of discharge, using reference number from ALC (a).
Documents and certificates for arrival
1. IMO General Declaration
2. Crew Declaration
3. Cargo Declaration or manifest
4. Up-to-date crew list (several copies) on the official IMO/FAL form
5. Passenger list or declaration if required
6. Cargo documents
7. All statutory and class certificates
8. Customs clearance from last port
9. Maritime Declaration of Health
10. Written authorization for the agent act for the master.

4..Requirements for reporting to Customs


The following vessels arriving in the UK must report to the Customs:
1. Vessel arriving from outside the EC.
2. Vessel from another EC country, but carrying uncleared imported goods loaded in a country
outside the EC, or for onward carriage to a non-EC country.
Unless Customs inform the master otherwise, an agent may act on his behalf.
The masters report must consist of the original and one copy of:
1. IMO FAL Form 1 IMO General Declaration. On this form some general information is
given about the ship and its voyage. The form must be signed either by the master or an
authorized person.
2. C.142 Crew Declaration. On this form he master and crew must declare certain goods.
Notes on the form explain which goods must be declared. Any small parcel of merchandise
and any addressed packages not shown elsewhere on the report must also be declared. The
form must be signed either by the master or an authorized person.
3. A cargo declaration. The master must declare the cargo. The declaration should be made in
one of four ways:
1. On a Manifest, or other commercial or administrative document, giving the
following details for each consignment, as applicable:
- the maritime transport document reference. E.g. the number of B/L
- the container identification / vehicle registration number
- the number, kind, marks and numbers of the packages.
- the description and gross weight / volume of the goods.
- the port or place where the goods were loaded on to the ship.
- the original port or place of shipment for goods on a through transport
document.
2. If there is no manifest or other suitable document, Customs will accept a cargo
declaration on the model form produced by IMO.
3. If the ship is carrying a single commodity bulk cargo, it details can be given in box
13 of Form C.13 instead of on a separate cargo declaration. For example single grade
of crude oil.
4. some ports in the UK operate a computerized inventory control system approved by
Customs. The master can usually make the cargo declaration by computer at these
ports. In this case the words Declaration of cargo by computer must be written in box
10 of Form C13.
If applicable, a PAS 15 (Arrival) Passenger Return should be attached to the report.

Custom may ask the master to give an extra copy of any or all of the repot forms. In some ports
they will always ask for an extra copy of the report.
The vessels Oil Pollution Insurance Certificate (OPIC), if any, must be shown.

Different option for reporting to Customs


If Custom do not visit the ship, the originals only must be delivered to the designated place in
port:
1. not later than 3 hours after the ship has reached its place of loading or unloading, or
2. 24 hours after arrival within port limits if by then the ship has not reached a place of loading
or unloading.
3. The limit of 3 hours for delivery of the report may be increased to 6 hours providing the
agent tells Customs in advance whether or not the ship will be carrying livestock, including
birds. The agent must declare this in writing to the designated customs office responsible of
the ships berth or dock during opening hours, and at least 6 hours before the ships arrival in
port.
4. The master must keep the duplicate report on board while the ship is in port. Customs may
want to see it if they visit.

Answer to Question 7
An Information Note for the Intended Port of Destination(Custom & Excise form C 73). The
master or agent must enter on it: vessels name; port and date of departure; intended port of
destination; and probable port of call. It must be signed by the master or agent and a copy left
with Customs before departure.

Answer to Question 8
The vessel divert to Lisbon to enable the cargo to be secured properly is perfectly matching the
criteria of the General Average Act if we refer the meaning of the general average terms show
below:
General Average Act means the actions taken in the peril which causing losses are purely for
the mutual safety reasons in order to minimize the loss of the property and the cargo in the
marine adventure.
The actions must be intentional and reasonable, which result the extraordinary sacrifice or
extraordinary expenditure.
To qualify the actions taken as General Average Act, the actions must match the following
conditions:
1. There must be a common marine adventure. For example, the ship owner who earns the
freight by carrying the cargo and charterer earn the profit by selling his product.
2. The common marine adventure must be in peril. For example, the vessel experience heavy
weather having the cargo moving around in the cargo space.
3. The actions and measure must be intentional and reasonable for the sloe purpose of saving
the marine adventure. For example, the vessel deviates from her cause to avoid the heavy
weather.
4. The actions and measure taken, which cause sacrifice or expenditure. For example, time
lost due to deviation.
5. The sacrifice or expenditure must be unusual, special, and extraordinary, not normally
happen often. For example, proceed to the other safe port in vicinity to make good the cargo
hold during experiencing heavy weather
6. The sacrifice or expenditure must be the direct loss or spending of the General Average Act.
For example, time lost due to deviation.
General Average Sacrifice GA sacrifice means the damage or loss arise due General Average
Act. In order to safe guard the further damage and loss to the ship owner; charterer; third party
and the environment , the vessel voluntary or intentionally make a reasonable sacrifice, give up
some of its cargo or cause some damage to its machinery or equipment or other similar action,
which will benefit to the vessel during peril.
The following are some examples of GA sacrifice:
1. Damage of the main engine, propeller or hull in refloating operations.
2. Slipping an anchor and cable to avoid a collision.

3. Jettison the cargo when vessel accidental run aground in order to refloating the grounded
vessel.
4. Cargo damage due to extinguishing a fire.
5. Wetting previously undamaged cargo while extinguishing a fire.
6. Beaching a ship voluntary to avoid foundering.
7. Putting into a port of refuge during a loaded voyage due to fire; shifting of cargo; collision.
8. Putting into a port of refuge to repair substantial damage in the hull or machinery.
General Average Expenditures GA expenditures means the expenses arise due to the General
Average Act.
The following are some examples of GA expenditure:
1. The fee of the Average Adjuster.
2. Masters and crews wage while the vessel is being repaired
3. Port charges
4. Warehousing charges
5. Surveyors fees.
6. Agency fees at port of refuge
7. Salvage costs
8. Cost of discharging cargo in order to refloat a stranded ship or to carry out repairs at a port
of refuge.
9. Cost of hiring a tug to refloat a stranded ship with cargo onboard.

Answer to Question 9
The adjustment of GA was prepared as set out below:
1. Port charge
2. Repair No.2 hatch (HWD)
3. Damage to Cargo (HWD)
4. Damage to Cargo while discharging at Lisbon
5. Damage to ships hatch/rail while loading
6. Stevedore charges
7. Ship running costs (US 4500 per day)
8. Repairs to weather damage to aft bulwark
9. Shifting berth (Port authority instructions)
10. Repair no 3 hatch derrick (HWD)

25,000
33,070
10,500
6,500
3,500
19,285
46,125
2,000
4,100
6,500

GA Sacrifice

156580

Contributory Values
Ship
Cargo
Total

$7,500,000
$1,500,000
$9,000,000

Contributions:
Ship: $7,500,000 / $9,000,000 x 156580=
Cargo: $1,500,000 / $9,000,000 x 156580=
Paid to cargo owner

$130483
$ 26097
$156580

The P & I will pay the liabilities not covered by the hull and machinery policy against third
party.
The underwriter / insurer of the vessel will pay the contribution
Insurer of Own vessel pay
Damage of own vessel

$8000 (as per Cl 6 ITC HULL)

Liability of 75% blame of


$40,000 of the fishing vessel

$225,00 (as per Cl 8 ITC HULL)

P & I Club of Own Vessel pay


liability of 75% blame of
$40,000 of the fishing vessel
Recovery insurer of own vessel
25% blame of $8000 damage as
per principle of subrogation

$7,500
$2,000

Answer to Question 11
For the receiver can present the bill of lading, the cargo can be released after checking his
proof of identity and proof that freight and charge have been paid.
For the two receivers can not present the bills of lading, I am not obliged to discharge the cargo
to anyone who cannot present the original of bill of lading, because there might be a serious
risk of fraud. They may be just a bogus hanging around, looking for the chance to attempt this
kind of crime.
If the master negligently delivers cargo to the wrong party without first requiring production of
an original bill of lading, the carrier will be held wholly liable for the consequences and will
receive no backing from his P& I club or sympathy from the courts.
Wrongful delivery may even result in the arrest and sale of the ship to recover the cargos value
for the rightful owner.
But the master may still be delivered the cargo if likely that the bill of lading has merely been
delayed.
In such occasion, the receiver must be with the ship owners and P & I clubs agreement after
the receiver signs a letter of indemnity (LOI) backed by a banks guarantee. This form of LOI
should indemnify the ship owner against all consequences and liabilities of delivery to the
wrong person. It should be signed by the consignee and a representative of a first class bank
able to meet any claim. This method of delivery is support by the P & I clubs, provided that
the terms of the letter are in their standard form. The preferred form can be found in the
handbook of some clubs. If in doubt, the club correspondent should be consulted.

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