Wednesday, September 17, 2008
Hong Kong ship with 18 Indians hijacked near Somali coast
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
Class 1 - Explosives
Saturday, August 30, 2008
Indian Container Market - A Study
Friday, August 29, 2008
What is SISCARGA
The system will serve to control and audit Brazilian cargoes loaded, trans-shipped or discharged on any vessel.
* 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;
* 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;
* 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"
* 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
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
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
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
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.
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 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.
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The Brazilian Government has decided to unify the current manifest reporting system, “Merchante” (for imports) and “Siscomex” (for exports)...
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One of the most sweeping new requirements of the Consumer Product Safety Improvement Act (“CPSIA”) becomes effective on November 12, 2008....
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Introduction Transportation of passengers and goods on waterways. From prehistoric times shipping has had a major influence on human social ...