1. Practice of International Trade – Obligations of the Seller
Chapter 4-4

2. We will pay attention mainly on marine transportation.
Features of marine transportation
The freight volume per ship is large
The freight of a sea transportation ship is low
The sea transportation ships can meet various requirements of the goods
The transporting techniques are easily to be improved

3. Kinds of marine transportation
Liner Transport
Features of liner transport
Fixedness – line, ports, basic freight, schedule
Loading and unloading of the goods are borne by shippers
The formalities of booking shipping space on a liner is simple
Freight of liner
Freight-charging standards
Basic freight and additional freights

4. Features of shipping by charter
The volume of goods is large, and the freight is relative low
Shipping conditions should be determined by negotiation
The rights, duties and obligations of charter and ship owner should be according to the charter party
Charter freight is determined by ship owner and consigner
Ship owner does not responsible for the loading and unloading of the shipped goods
F.I.O.; F.I.; F.O.; Gross terms (Liner terms)

5. Kinds of chartering Voyage charter
Freight rate may fluctuate when the demand and/or supply of chartering market changes.
The rate of how many tons at which the ship is to load and demurrage and dispatch money should be stipulated in charter party.
Time charter
Only sailing area is stipulated in time charter contract instead of definite shipping route.
The ship owner is responsible for the seaworthiness and ship’s class ship owner is responsible for the seaworthiness and ship’s class
Demise charter (Bareboat charter)

6. The relationship between the contracts of marine transportation and the sales contracts
Time of shipment
Liner transport
Shipping by charter
The port of shipment
When shipping by charter, pay attention to the rate of flexibility.

7. Bill of Lading (the document of marine transportation)
Natures and functions of B/L
Receipt for the goods
Document of title (in most cases)
Evidence of the contract of carriage
Kinds of B/L
On board B/L (Shipped B/L) and Received for Shipment B/L
Clean B/L and Unclean B/L (Foul B/L)
Straight B/L (Non-negotiable B/L), Order B/L and Blank B/L (Open B/L, or Bearer B/L)
A straight B/L is not a document of title

8. Ante-Dated B/L, Advanced B/L and Stale B/L
Direct B/L, Transshipment B/L and Through B/L
Long form B/L and Short Form B/L
Documents of international railway transport, Documents in road transport, Air Waybill, Parcel Post Receipt are not document of title; MTD can be used as a document of title.

9. Clause of delivery (shipment)
Time of delivery (shipment)
Methods of stipulating the time of delivery (shipment)
Pay attention on the following:
The supply of the contracted goods
The shipping space
Time of delivery should be clear and definite
The length of the period of time of delivery
The L/C’s time of validity
The feature of the goods and market

10. The port (place) of shipment and the port (place) of destination
Way of stipulating the port (place) concerned
Attention to the stipulation of the port (place) of shipment and destination
The stipulation should be clear and definite – expressions such as European Main Ports should be avoided.
Two or more ports (places) of shipment or destination can be stipulated in a contract as the circumstances may require.
Conditions of the port of shipment and destination must be considered.
Attention should paid to the ports (places) with the same name.

11. Partial shipment and transshipment Partial shipment
A general stipulation
A clear and definite stipulation
Different explanations according to different laws
Transshipment
Shipping advice
Demurrage and dispatch
Clause of O.C.P.
Overland Common Points – encourage to use the land bridge transport in U.S.

12. Other kinds of transportation besides marine transportation
Rail transport
Road transport
Air transport
Make balance between high cost and high speed
Mail transport
Pipeline transport
International multimodal transportation
A MTO is responsible for the whole journey
A single freight existed
Only one document of transport (MTD) concerned

13. Attention to international multimodal transportation
It’s different from “through transport”
MTO may be NVOCC (non-vessel operating common carrier)
Containers are usually used
CY; CFS; FCL; LCL
FCL/FCL; FCL/LCL; LCL/FCL; LCL/LCL
Land bridge transport
The U.S. land bridge
The Canadian land bridge
The Siberia land bridge (The first Europe-Asia land bridge)
The China-Holland land bridge (The second Europe-Asia land bridge)

14. Insurance Risks Marine risks (Perils of the Sea)
Marine risks do not include all the risks in the course of marine transport.
Natural Calamity
Fortuitous Accidents
Extraneous risks
General extraneous risks
Special extraneous risks

15. Marine Losses Total Loss Actual total loss Constructive total loss
The goods are lost thoroughly
The loss of the goods cannot be retrieved
The commercial value is lost completely
The carrying vessel has been missing for a reasonable period of time
Constructive total loss
When the goods are damaged, the expenses for repair will exceed the goods’ value after being repaired
Notice of Abandonment

16. Expenses Partial Loss General Average (G.A.) Particular Average (P.A.)
General Average contribution
Particular Average (P.A.)
Expenses
Sue and Labor Expenses
Salvage Charges

17. Traditional insurance coverage in marine transport insurance
Basic insurance coverage
Kinds of basic insurance coverage
Free from Particular Average (F.P.A.)
With Particular Average (W.P.A.)
All Risks
Exclusions in Clause of Insurance
Loss or damage caused by the intentional act or fault of the insured, or falling under the liability of the consignor
Loss or damage arising from the inferior quality or shortage of the insured goods prior to the attachment of this insurance
Loss or damage arising from normal loss, inherent vice or nature of the insured goods, loss of market and/or delay in transit
Loss or damage caused by war, strike etc.

18. Additional insurance coverage - cannot be purchased independantly.
General additional insurance coverage
Theft, Pilferage and Non-delivery; Fresh Water & Rain Damage; Risk of Shortage; Risk of Intermixture & Contamination; Risk of Leakage; Risk of Clash & Breakage; Risk of Odor; Damage Caused by Heating & Sweating; Hook Damage; Loss or Damage Caused by Breakage of Packing; Risks of Rust
Special additional insurance coverage
War Risk; Strike Risk; Failure to Deliver Risk; Import Duty Risk; On Deck Risk; Rejection Risk etc.

19. Institute Cargo Clause (I.C.C.) of London Insurance Institute
I.C.C was first set in 1912, and the newest revision was in 1982.
Institute Cargo Clause (A)
Institute Cargo Clause (B)
Institute Cargo Clause (C)
Institute War Clauses – Cargo
Institute Strikes Clauses – Cargo
Malicious Damage Clauses

20. Attention to set Insurance Clause in Sales Contract
Choose the Insurance Clause which is the accordance of insurance
Set total amount insured
Franchise
Set insurance covers
Document of insurance
Insurance Policy
Insurance Certificate