6 Chapter 11 Tranportation6 Chapter 11 Tranportation.pptVIP

11-36 Time Charterparties time charterparty A time charterparty is a contract to hire an entire ship for a period of time. The charterer directs the carrier to proceed to wherever the ship is needed. A bill of lading serves only as a receipt and document of title between the charterer and shipowner. If the bill of lading is passed to a third-party endorsee, the Hague and Hague-Visby Rules will then apply. 11-37 Maritime Liens(船舶优先权） A maritime lien is a charge or claim against a vessel, its freight, or its cargo. Ship is juridical person in common law countries. Maritime liens attach to the res (i.e., the vessel, freight, cargo) and travel with it. They are secret and go with the vessel when sold. Foreclosure of a maritime lien involves arrest of the res and sale of the res. Claims must be ranked when there are multiple lienholders: 1) judicial costs 2) seaman’s wages 3) salvage 4) tort claims 5) repairs, supplies, and necessaries 6) ship mortgages 11-38 Case 11-6: The Chinese Seamen’s Foreign Technical Services Co. v. Soto Grande Shipping Corp., SA The shipowner had contracted for a crew of 25 seamen for a one-year period. Wages were not paid. The ship was seized and sold to satisfy the wage claim and other claims. The court had to rank the claims, including a second claim for wages, judicial costs, harbor usage, ship’s stores, mortgage, and repair costs. Claims were paid based upon priority until the funds were exhausted. 11-39 Maritime Insurance Cargo is usually covered by an open cargo policy. It insures all the cargo of an exporter during a particular time period. All shipments are covered, whether by truck, rail, air, or vessel. Parties involved in an isolated sale can purchase a special cargo policy, but will usually be covered by the open cargo policy of a freight forwarder. 11-39 Perils Loss or damage from the sea Fire Jettison Forcible taking of the ship Barratry Explosion Fumigation damage Damage from loading, discharging, or transshipping