Commercial and Contractual Aspects of Shipping - Assignment Example

Quiz What are the prerequisites for one to become a Canadian shipping agent? What are the agent’s potential liabilities with respect to fees, tariffs and fines? Requirements for becoming a Canadian shipping agent: For one to become an agent, first he/she must have a contractual agreement with the principal. Secondly, the principal must place the agent in a position of perceptible authority and permit the agent to represent him or her in all dealings in the same capacity as the principal could. There also must be a ratification of agent’s action whenever the agent undertakes a task without principal’s prior authority. Potential liabilities: Under the Canadian law, agents are liable and responsible for the misconduct, particularly if they are a meaningful party to a transgression or violation. Consequently, the agent may perhaps be the party who has the responsibility to inform his principal. In terms of fees, agent deemed to have violated the immigration, Pilotage, and Canadian marine acts is liable financially if the agent fall short in collecting from the principal. For instance, as with Pilotage Act, the agent is imposed to pilotage fines if pilotage invoices are forwarded to the master or owners (Lecture 7, p. 4). The same fines are applicable, when a Canada Port Authority sends invoices. As with tariffs, any agent officer acting under the authority of customs Act can deny entry of a vessel if the documents provided are not in tandem with the specified regulations. Often, in such situation the agent is liable for notification, devoid of which may result in the imposition of tariff penalties for unlawful entry of a vessel or illegal goods (Lecture 7, p. 4). Quiz 2. Statement of facts and its use in the calculation of Laytime The statement of facts should highlight key elements such as (1). The separate laytime for cargo loading and discharging, (2) the total laytime for loading and discharging cargo, and (3) the commencement of laytime, both loading and discharging time (Lecture 2 p. 5). The statement of facts thus plays a crucial role in the determination of the distinct lay times. First, through the separate lay-time, a cargo is loaded within the number of days or hours as noted in box 16, with Sundays and holidays exempted. Consequently, a cargo is discharged within the same days or hours as stipulated on box 16. Secondly, in respect to total lay time, the cargo ought to be loaded or discharged within the total running hours or days as noted on box 16. Thirdly, commencement of lay time is stipulated as commencing at 13.00hrs, when the readiness notice is given up, and at 06.00hrs. Notice of readiness is given to shippers at the loading port in Box 17 (Lecture 2 p. 5). Quiz 3. What are the Hague-Visby Rules? Do they favour any party in the industry? The Hague-Visby Rules are set of terms and regulations for sea transport of goods together with those that are generally incorporated into the Bills of lading and charter parties throughout the globe (Lecture 4, p. 1). The law stipulates a minimum imposition upon the carrier to safeguard the shippers’ interests. The rules also specify each role or duty of parties in the shipping industry. A thorough examination of the obligations and liabilities of all parties in the shipping business to a large extent indicates a balanced set of laws governing all stakeholders. While it is implicitly stipulated that the carrier ought not to deviate from the agreed responsibilities, Article IV of Visby Rules provides a deviation in instances a carrier is indebted to save life or property at sea. In such situation, any rational variation shall not be considered a contravention or infringement of these Rules. Conversely, besides the shipper’s obligations such as describing the goods frankly and accurately, the shipper is not allowed to ship dangerous consignments except if agreed to by both parties (Lecture 4, p. 1). Quiz 4. Who can claim for damages for fatalities? How much? How ship-owner lose the right to limit liability? As to who should claim for damages for accidental deaths is stipulated in part 1 of the maritime liability Act. The section establishes that the passenger’s dependants (dependents of the injured or deceased) are the only people who can claim compensation for damages. The amount of compensation is calculated through a multiplication of C$ 1,000 by the tonnage of the biggest ship to have docked in the last 5 years but is limited to a minimum of C$2 million (Lecture 8, p. 3) For instance, less than 300 ships gross tonnage the fee is C$1,000,000. The ship owner could lose the right to limit liability if the plaintiff proves in due course that the loss in question resulted from individual act or omission of the defendant. Such establishment to validate the truth is a very stern test and is frequently referred to as instituting an unbreakable limitation. Therefore, a case where such prove is reached at, ship-owner losses the right to limit. Quiz 5. Which analogy of transport resembles voyage charter party contracts? A tax is the means of transport that resembles the charter travel contracts. Such is because; a tax is hired by individual to move from start destination to the final destination. Here, the passenger always pays more than what he or she could pay when taking the bus, therefore, as a reward the passenger in tax has control over the schedule of the trip. Similarly, in a voyage charter the accord is between the vessel owner and the individual organising the transportation of the cargo (client). The carrier will then take the cargo from point A to B as designated by client who has paid a higher fee as a way of securing control over the schedule (Lecture 1, Pg 5). Therefore, the paramount aspect of his analogy is having a fairness accord between the parties. Quiz 6. Should an Agent sign the OBL? Why or why not? Who is the carrier? Since it is my responsibility for validate the bill of lading, I will sign the OBL. This is because even though the shipper is asking for a clean on board bill of lading issuance, the fact the he is offering a letter of indemnity, the cover is an insurance for the undertaking. The deficiencies are not a result of agent’s neglect, thus the burden of substantiation shall be on the individual (shipper) claiming the benefit of this exception to show that is was not the neglect of the agents that contributed to the discrepancies. The carrier is protected under clause 3(1) and therefore is not accountable for any discrepancy or accepting the LOI during loading or after discharge from the vessel (Lecture 2, p. 9). In this relation, a carrier is an individual responsible for properties cautiously load, stow, handle, keep, carry, care for, and discharge the cargo in the “vessel together with exercising of due diligence to . . . Ensure ship seaworthy and to. . . Appropriately man, furnish and supply the ship (Lecture 4). “ Quiz. 7 What is transferred by the Demise Clause? Why Agents only sign bills of lading? The Demise clause intends the transfer of both administrative and practicing rights from the principal and places the responsibility on the hands of the lessee, who is the demise charterer. For instance, assignments such as the compliance with the Demise clause and signing documents are transferred to the agents, a duty that is initially the principal’s. Therefore, under the charter party, the principal appoints the master and the crew to carry out tasks (lecturer 9, p. 1). The signing of the bills of lading is only done by the agents only on principal’s behalf, mainly because of liability in case of loss. Despite the carriers having responsibility of transporting the cargo, the will always avoid being held liable for freight they cannot quantify (Lecture 2. P. 8). As per the Hague-Visby laws, it is the shippers’ role to provide details of carriage to the carrier. The carrier has a responsibility to abstain from signing anything on the lading bill for he has no realistic means of checking. Through the Visby clause, therefore, the carrier may perhaps include details in the documents at the shipper’s convenience, without making any potential accountability for himself. Quiz 8. What is covered by Hull and Machinery and Property and Indemnity Insurance? The Hull and Machinery insurance comprehensively covers or is tailor-made to safeguard the ship-owner’s investment in the ship. The cover is often referred as the first party policy because it essentially insures the ship against damage resulting from the already insured perils (Lecture 5, P. 4). Some examples of the perils or risks insured against often engrossed wind and waves, stranding, collision, foundering, , as well as other threats such as accidents resultant from loading or releases cargo; breaking of shafts, or bursting of boilers (Lecture 5, P. 4). In addition, the property and indemnity insurance covers loss or damage to cargo or property on the ship or at the dock. A good example is the impact or collision between the vessel and other persons’ property, which may include docks, locks, wharves, etc. A cover for these properties is called the Club coverage, which may be incurred in excess of the limit imposed by the hull policy cover. The Club cover also extends to dent caused by the vessel to other ships and their cargoes with no any concrete contact, as, for instance, when a moored ship is damaged because she has been passed very close and at excessive speed (Lecture 5, P. 4). Quiz. 9. Does Canada Shipping Act 2001 apply to non-Canadian ships? When and how? Despite the other provision of the act, the Act is not applicable in respect to a vessel that belongs to a foreign military or in regard to any other foreign vessel. However, under the Act’s Regulations, except if expressly provide otherwise, apply in reverence of a Canadian ship in the waters of a nation other than Canada. Of significance is the section 45 of the Act, Whereby, the Act’s Hamburg Rules do not apply to providing the adjudication or settlement of claims arising under the contract in a country other than Canada. Thus, a plaintiff could nonetheless institute judicial trial in an arbitral tribunal in Canada (Lecture 8). Quiz 10. Who in Canadian marine pollution is the polluter from a ship? What compensation regime is available for all such forms of ship pollution? As stipulated in clause 2 part 6 of the Marine Liability Act, the ship-owner is the polluter and the person liable for water pollution. Therefore, if the oil pollution damage emanating from a ship leads to impairment of the sea environment the owner of the vessel will take responsibility. The liability includes the costs of reasonable replacement measures either actually undertaken or to be undertaken. Within the same clause, is a provision for compensation regime whenever a ship-owner is established to be a polluter. Through the act, the first convention necessitate that ship-owners possess a P& I cover for damage, and the 2nd provides a compensation fund to insurer oil pollution recompense costs over and above the ship-owners limited legal responsibility amount. (Lecture 8, p. 6). For instance, the Club cover at the moment imposes a limit of $ 1 billion per ship pollution incident (Lecture 5, p. 4). Works cited Lectures 1-9, “SHIP 4 - COMMERCIAL AND CONTRACTUAL ASPECTS OF SHIPPING Final ..." Shipping Federation of Canada”. n.d. Web. 16 Dec. 2014 . Read More