Showing posts with label shipping. Show all posts
Showing posts with label shipping. Show all posts

Wednesday, September 17, 2008

Hong Kong ship with 18 Indians hijacked near Somali coast

Around 18 Indians are among 22 crewmembers on board a ship that was hijacked by pirates Monday in the Gulf of Aden near the Somali coast, an official confirmed on Tuesday.

Maritime official said the Hong Kong ship Mt Stolt Valor was sailing in a maritime security corridor in the gulf patrolled by an international coalition of warships and aircraft when it was attacked.

The incident took place at 1016 GMT on Monday. There were 18 Indians, two Filipinos, a Bangladeshi and a Russian national on board the vessel when it was hijacked. The ship was on its way to Mumbai.

Pirates have stepped up attacks on merchant vessels in the Gulf of Aden, as Somalia's current transitional government has failed to shackle the pirates in the key commercial shipping lane.

An international maritime organization has sounded the alarm over the upsurge of hijacking incidents on the Gulf of Aden where more than 50 Filipino seafarers have been abducted since July. The alert stipulates 24-hour vigil as they pass through the Gulf of Aden.

The Gulf of Aden, an important waterway for shipping, is within the Arabian Sea. It is between Yemen on the south coast of the Arabian Peninsula and Somalia in the Horn of Africa. It connects with the Red Sea through the Babel Mandeb strait in the northwest.

Friday, September 12, 2008

What is Force Majeure Clause

The Force Majeure clause in a contract excuses a party from not performing its contractual obligations due to unforeseen events beyond its control. These events include natural disasters such as floods, earthquakes, and other "acts of God," as well as uncontrollable events such as war and terrorist attacks. Force Majeure clauses are meant to excuse a party provided the failure to perform could not be avoided by the exercise of due diligence and care. However, it does not cover failures resulting from a party's financial condition or negligence.

Force Majeure literally means "greater force." When used in a contract, the Force Majeure clause is one of several boilerplate clauses, which are clauses normally written using standard, universal language. Other common boilerplate clauses include arbitration clauses and entire agreement clauses.

The intention of the Force Majeure clause is to excuse liability of a party because of uncontrollable outside events. For example, you signed a purchase agreement for a house, and before you gained ownership of it, the house burned down due to a fire caused by lightning. Neither the buyer nor the seller would be held liable under the terms of the contract; the seller for not providing the property as stipulated in the contract, and the buyer for not paying the balance of the purchase price.

When negotiating Force Majeure clauses, make sure the clause applies equally to all parties. Be sure to include specific examples of events that will excuse performance under the clause. The following are three basic categories of these kinds of events:

* Natural disasters, such as earthquakes, hurricanes, floods, tornados, and fires

* Human events, such as wars, riots, or other major upheavals

* Performance failures outside the control of the contracting party, such as disruptions in telephone service attributable to the telephone company; labor disputes other than those of the contractual parties; government restrictions (denial or cancellation of a necessary license); or supplier problems (product unavailable)

Generally, the events that the Force Majeure clause does not cover include:

* Computer failures

* Software glitches

* Distributor troubles

* Internal labor disputes

* Credit problems

The language of a Force Majeure clause should pertain to the area of business that the contract covers. Internet companies should put in provisions for electronic failures and Internet service provider disruptions. The more specific you are as to the events covered under the clause, the better the contract will protect you.

The basics of the Force Majeure clause have been incorporated in the Uniform Commercial Code (UCC Sec 2-615) and the Restatement of Contracts 2D (Sec 261). Under Section 2-615, "Excuse by Failure of Presupposed Conditions," a seller who is unable to deliver goods because of a contingency that makes the terms of the contract impossible to fulfill. The seller must notify the buyer of the delay or nondelivery. Under 2D Section 261, "Excused Nonperformance" is broken down into four areas:

* Objective Impossibility
* Force Majeure
* Supervening Illegality
* Commercial Impracticability

Here's a sample template of a Force Majeure contract clause:

Neither party shall be liable in damages or have the right to terminate this Agreement for any delay or default in performing hereunder if such delay or default is caused by conditions beyond its control including but not limited to acts of God, government restrictions (including the denial or cancellation of any export of other necessary license), wars, insurrections and/or any other cause beyond the reasonable control of the party whose performance is affected (including mechanical, electronic, or communications failure).

Courts using the interpretive rule of ejusdem generis could possibly exclude certain unforeseen events unless specifically listed in the Force Majeure clause. One way is to list in the contract as many of the possible uncontrollable events that might cause the terms of the contract not to be fulfilled. As an extra precaution, add the phrase "including but not limited to," as shown in the above example of a Force Majeure clause.

Tuesday, September 9, 2008

IMCO

The International Maritime Dangerous Goods (IMDG) Code Was First Published In 1965 By The International Maritime organization (IMO), Then Known As IMCO (The Inter-Governmental Maritime Consultative Organization). The IMDG Code Is Intended To Provide For The Safe Carriage Of Dangerous Goods By Sea And To Prevent Pollution. It Is Based On The United Nations Recommendations On The Transport Of Dangerous Goods.

IMCO Class
Grouping Of Dangerous Goods By Type Of Risk Involved ,This Grouping Was Drawn Up By The Un Committee Of Experts On Transport.

Flash Point
The Minimum Temperature At Which The Flammable Vapors Of A Substance (In Contact With A Spark Or Flame) Will Ignite.

UN Number
United Nations Serial Number, That Is To Say, One Of The Four Digit Numbers Devised By The United Nations And Specified In The Approved Carriage List As A Means Of Identification For Dangerous Goods.

MFAG
Medical First Aid Guide
Class 1 - Explosives

1.1 Substances And Articles Which Have A Mass Explosion Hazard.
1.2 Substances And Articles Which Have A Projection Hazard But Not A Mass Explosion Hazard.
1.3 Substances And Articles Which Have A Fire Hazard And Either A Minor Blast Hazard Or A
Minor Projection Hazard Or Both,But Not A Mass Explosion Hazard.
1.4 Substances And Articles Which Present No Significant Hazard.
1.5 Very Insensitive Substances Which Have Mass Explosion Hazard
1.6 Extremely Insensitive Articles Which Do Not Have A Mass Explosion Hazard

Class 2 - Gases Compressed ,Liquefied Or Dissolved Under Pressure.

2.1 Flammable Gases
2.2 Non-Flammable Gases
2.3 Toxic Gases

Class 3 - Flammable Liquids

3.1 Low Flash-Point Group Of Liquids(Flash-Point Below –18C. )
3.2 Intermediate Flash-Point Group Of Liquids(Flash-Point Of – 18C.Up To But Not Include
+23C.)
3.3 High Flash-Point Group Of Liquids(Flash-Point Of +23C. Up To And Include +61C.)

Class 4 - Flammable Solids Or Substances

4.1 Flammable Solids
4.2 Substances Liable To Spontaneous Combustion
4.3 Substances Which In Contact With Water Emit Flammable Gases.

Class 5 - Oxidizing Substances (Agents)And Organic Peroxides.

5.1 Oxidizing Substances (Agents) Yielding Oxygen Increases The Risk And Intensity Of Fire.
5.2 Organic Peroxides-Most Will Burn Rapidly And Are Sensitive To Impact Or Friction.

Class 6 - Toxic And Infectious Substances

6.1 Toxic Substances.
6.2 Infectious Substances.

Class 7 - Radioactive Substances
Ex:- Substances Used In Industrial ,Medical Or Scientific Purposes.

Class 8 - Corrosives
Ex:- Acids As Glacial Acetic Acid, Hydrochloric, Sulphuric And Nitric Acid, Caustic Soda And Caustic Potash

Class 9 - Miscellaneous Dangerous Substances And Articles.
Ex:- A Wide Range Of Substances As Asbestos,Some Fertilisers And Environmentally Hazardous Products.

MHB - Materials Hazardous Only In Bulk.

Saturday, August 30, 2008

Indian Container Market - A Study


* The Indian container market continues to grow rapidly, at 15-20 per cent per year. In the next five years, container traffic is expected to double in volume to 12.5 million TEUs per year.

* The growth in container traffic is being fuelled by a host of factors. These include high GDP growth, big increases in imports and exports, rising share of finished goods (such as cars, garments and electronics), growth in agricultural products trade, etc., etc.

* It is important to note that this growth is occurring despite the bottlenecks caused by inadequacies in port capacity, rail infrastructure, road capacity, multimodal connectivity, warehousing/storage, customs efficiency and use of information technology.

* This level of growth, however, will continue only if we address and remove these bottlenecks

* We will need to develop more container terminals and increase draft levels to allow bigger ships to ply. We will have to increase rail capacity by adding more container trains, high-speed trains, doublestack trains, dedicated freight corridors, etc. We will have to improve road connectivity as well as road quality. We will have to upgrade warehousing/storage facilities with more ICDs, CFSs and full-fledged logistics parks and centres. We will have to introduce a wide range of value-added services that define modern logistics. We will have to increase the level of automation and use of IT to make this a true e-business. We will have to improve multimodal connectivity. And we will need a more efficient, modern and simpler customs process.

* These are ambitious tasks, to say the least. But the good news is that steps are already being taken in some of these directions. The container capacity at ports will more than double in the next five years. We have seen a big increase in container trains and also some progress on the freight corridor. Road transport is also improving with greater width, higher quality and better-managed fleets. A number of state-of-the-art logistics parks are being developed. Major rail-port and road-port connectivity projects are finally getting off the ground. All of this progress is being hastened by more rational policies and greater private participation.

Friday, August 29, 2008

What is SISCARGA

The Brazilian Government has decided to unify the current manifest reporting system, “Merchante” (for imports) and “Siscomex” (for exports) into a new and unique system called “SISCOMEX CARGA”.


The system will serve to control and audit Brazilian cargoes loaded, trans-shipped or discharged on any vessel.

Below is a summary of the main requirements of “SISCARGA”:


* Exports from Brazil (Shipping Instruction cutoff is 72 working hours before the vessel’s arrival at the port of loading):


* Full shippers' name and address, related to company filled in Shipper' bill of lading section;

* Shipper's CNPJ or CPF (Federal Revenue - Tax payers Register Number for companies or individuals, respectively), as per the section "Shipper" in the bill of lading, under status "active" in Custom House Bureau;

* Merchandise to be measured in cubic meters (m³) and specified in packaging (if pallets, cases, big bags, etc);

* Merchandise gross weight in kilos (container tare to be excluded);

* Cargo NCM (International Harmonized Tariff Code), 4 (four) first digits (position) or optionally 8 (eight) digits (complete sub-item code), for each merchandise item stuffed into the container;

* It is imperative that the information inserted in the "DRAFT" is accurate, once SISCARGA does not permit any data alteration after its register in the system. Should any correction after data transmission be necessary, same will be subjected to penalties per bill of lading.

Note: As regards the export cargo manifests, they must be filed with Customs up to 8 hours (without fail) before vessel's arrival in each calling port.


* For the import cargoes, transfer, transshipment or containers in transit, coming from overseas, it is mandatory that all bills of lading issued by respective agents from origin contain the following information:

* Full consignee and notify name/address, as per corresponding fields in bills of lading sections;


* Consignee and notify CNPJ or CPF (Federal Revenue Register Number for companies or individuals, respectively), as per the respective bill of lading fields, under status "active" in the Customs House Bureau registers. Whenever the consignee is a foreigner, the identification will be made by means of complete full style;
* To order" BL is acceptable though,shippper have to inform the actual shipper by the time mentioned above.

* Merchandise to be measured in cubic meters (m³) and specified in packaging (crates, pallets, cases, big bags, etc);

Thursday, August 28, 2008

About "10+2"

Washington — U.S. Customs and Border Protection (CBP) has published on January 2, 2008 a Notice of Proposed Rulemaking (NPRM) requiring importers and carriers to electronically submit additional information on cargo before it is brought into the United States by vessel. The Security Filing, also known as “10+2,” is another step in the Department of Homeland Security’s (DHS) strategy to better assess and identify high-risk shipments to prevent terrorist weapons and materials from entering the United States.
“The Security Filing will improve CBP’s ability to target high-risk cargo by identifying actual cargo movements and improving the accuracy of cargo descriptions,” said CBP Commissioner W. Ralph Basham. “It will also improve our ability to facilitate lawful international trade by identifying low-risk shipments much earlier in the supply chain.”
This initiative strengthens cargo security by making CBP screening more efficient and effective. CBP has implemented a comprehensive, multi-layered cargo security strategy designed to enhance national security while protecting the economic vitality of the United States. These efforts include the 24-hour Manifest Rule, Container Security Initiative, Customs-Trade Partnership Against Terrorism, Non-Intrusive Inspection Techniques, Automated Targeting System, the Secure Freight Initiative, and the National Targeting Center.
The proposed regulation will require carriers to submit “10+2” additional pieces of information in order to enhance the security of the maritime environment. The additional information includes: (1) a vessel stow plan used to transmit information about the physical location of cargo loaded aboard a vessel bound for the U.S; and (2) container status messages, which report container movements and changes in status (e.g., empty or full)
In addition, the NPRM also requires importers to submit an “Importer Security Filing” containing the following 10 data elements:

* Manufacturer (or supplier) name and address

* Seller (or owner) name and address

* Buyer (or owner) name and address

* Ship-to name and address

* Container stuffing location

* Consolidator (stuffer) name and address

* Importer of record number/foreign trade zone applicant identification number

* Consignee number(s)

* Country of origin, and

* Commodity Harmonized Tariff Schedule number
Currently, CBP relies primarily on carrier manifest information to perform advance targeting prior to vessel loading. Internal and external reviews have concluded that more complete advance shipment data would produce more accurate and effective cargo risk assessments. This way resources can be focused on true threats and legitimate cargo can speed through the system as quickly as possible.
The proposed regulation is intended to satisfy provisions outlined in the Security and Accountability for Every Port Act of 2006, which require the submission of additional data elements for improved high-risk targeting.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Tuesday, August 26, 2008

Shipping Industry

Introduction

Transportation of passengers and goods on waterways.

From prehistoric times shipping has had a major influence on human social development. Water routes, unlike roads, did not need building, and the difficulties and dangers were less than those offered by mountains, marshes, and enemy tribes. Therefore many early civilizations developed on navigable rivers or on the coasts of warm seas.



History

Commercial shipping probably began in the Mediterranean Sea where the merchants of Phoenicia owned ships and traded widely. Many of their practices were adopted by Ancient Greece and the Roman Empire. Later, in the Middle Ages, the merchants of Venice carried on and further refined these practices. Even today, commercial shipping practices associated with

marine insurance and the carriage of goods can still be traced to those early roots.


From the 15th to the 18th centuries, deep-sea shipping was closely linked to colonial trade especially that of the Spanish Empire, the Portuguese Empire, the Dutch Empire, and the British Empire, and to the growth of the great enterprises like the Hudson’s Bay Company and the East India Companies



Nineteenth Century

Many of the developments that characterize the modern shipping industry began in the 19th century. In 1818 the Black Ball Line initiated the first scheduled service with the sailing of the James Monroe from New York to Liverpool. The following year the Savannah crossed the Atlantic Ocean, using steam propulsion for much of the way, and in 1838 the British vessel Sirius made the first crossing entirely under steam. A decade later ship design and construction was revolutionized by naval architectural innovations introduced by Isambard Kingdom Brunei in the Great Western, Great Britain, and Great Eastern.

The completion of the Suez Canal in 1869 opened up new trade routes and the possibility of regular shipping services between Europe and the East. Around the same time, the sailing vessel Elizabeth carried the first mineral oil cargo and a few years later, in 1886, the first modern ocean-going tanker Glückauf entered service.



During the last years of the 19th century, many large and luxurious passenger liners were built to meet the growing demand for international travel, both by the rich and by emigrants seeking new lives. The steam turbne, invented by Sir Charles Parsons in 1884, enabled some passenger vessels to achieve speeds in excess of 20 knots.




Twentieth Century

In 1912 the Danish vessel Selandia became the first sea-going ship with a diesel engine. Today most merchant ships have diesel engines, usually connected to a single propeller. Steam propulsion has now almost disappeared, and nuclear propulsion, installed experimentally in the Savannah, Otto Hahn, and Mutsu, has been abandoned for merchant ships, although it is still widely used in warships.


Since World War II, merchant ships have become generally larger, faster and more specialized. Many tankers of more than 200,000 tonnes deadweight have been built. The Batillus, one of the largest built in the 1970s, was more than 600,000 tonnes deadweight. Bulk ore carriers of more than 100,000 tonnes deadweight are common. Today most manufactured goods are transported by ships specially designed to carry standard containers. The largest, like the Emma Maersk, are around 397 m (1,300 ft) long and are capable of carrying more than11,000 containers.



Shipping Scenery

Shipping is a highly competitive industry serving the needs of international trade. It is truly international, both in the nature of its business and in the way it is organized. Shipping companies usually operate in one or more of the following principal sectors: the dry bulk, oil, and liner trades.


During the 19th century and until the middle of the 20th century, most of the world’s merchant fleet operated under the British flag or the flag of one of the long-established maritime nations like Norway, France, Germany, and Japan. However, nowadays the flag flown by a ship is not always a good indicator of the country in which it is beneficially owned.


Many ships now fly flags of convenience. This arrangement provides their owners with a variety of economic benefits, including protection against corporate taxes in their home states. Thus much of the world’s merchant fleet is now registered in so-called open-registry states, even though the owning companies are probably based in Europe, America, or South East Asia. Panama, Liberia, Malta, and Cyprus are currently among the most important open-registry states.



The world’s merchant fleet consists of nearly 100,000 vessels, of which cargo-carrying ships account for roughly half. The rest are employed in non-trading activities like fishing, supporting the offshore oil industry, and providing general maritime services, such as towage, dredging, and surveying.

The composition of the world’s fleet today is very different from that of the 1940s. In those days a typical dry cargo ship was probably a 10,000 tonne deadweight general-purpose vessel, like the Liberty ships built in large numbers during World War II. They could have been used to carry either bulk cargoes or general cargoes. A typical tanker of that period was probably around 15,000 tonnes deadweight, like the many T2 standard vessels built in the United States during World War II.


Today, the situation is radically different. New types of cargo-carrying ships, many of them highly specialized and very large, have been introduced to meet the needs of expanding and more diverse international trade. Their aggregate capacity continues to expand year by year.

As ships have become bigger, they have also become more complex. Automation and other technological developments, particularly in computers and communications, have had a profound effect on the way ships are operated. Crews have become smaller, labour productivity has increased greatly, and many traditional navigation and seafaring skills no longer have a place in the operation of modern vessels.