SHIPPING MANAGEMENT

CONTENT
INTRODUCTION
LESSON 1: SHIP TRANSPORT
LESSON 2: MODES OF TRANSPORT
LESSON 3: BASIC TYPE OF SHIPS
LESSON 4: THE MARINE SOCIETY
LESSON 5: BAILMENT
LESSON 6: SPECIAL CONTRACTS - INDEMNITY AND GUARANTEE
LESSON 7: GENERAL DAMAGES
LESSON 8: TORT - NEGLIGENCE IN SHIPPING AND DEFENSES AGAINST TORTUOUS
LIABILITIES
LESSON 9: BILLS OF LADING
LESSON 10: HAGUE RULES GO!ERNING LA" AND #URISDICTION
LESSON 11: SHIPMANAGEMENT AND THE ISM CODE
INTRODUCTION
O$%&'()*&+ ,- S.)//)01 M2021&3&0(
To promote and establish the stats o! "ali!ied shippin# personnel in $ommer$ial or#ani%ations and
indstries
To promote the interests o! the shippin# $ommnities and the de&elopment o! impro&ed methods in
the shippin# trade
To stimlate and promote the interest o! shippin# personnel to a$"ire hi#her "ali!i$ation in modern
shippin#
To hold $on!eren$es and meetin#s !or the dis$ssion o! pro!essional a!!airs' interests and dties' the
readin# o! papers' and the deli&er( o! le$tres) to $ompile and re&ise re#isters o! the Institte' to isse
$opies o! s$h papers' le$tres and pro!essional re$ords !rom time to time to *embers o! the
Institte' and #enerall( to $olle$t' and pblish in!ormation o! ser&i$es or s$h interests to members o!
the pro!ession or similar bsiness and the pbli$ at lar#e
To do s$h other la+!l thin#s as are $ond$i&e and in$idental to the attainment o! the ob,e$ts and
+el!are o! the *embers' in$ldin# a!!iliation
L&++,0 1
SHIP TRANSPORT
Ship transport re!ers to the se o! +ater$ra!t to $arr( people' #enerall( re!erred to as passen#ers' and
#oods' #enerall( re!erred to as $ar#o' !rom one pla$e to another-
Altho#h the histori$ importan$e o! sea tra&el !or passen#ers has de$reased de to the
de&elopment o! atomobiles and a&iation' it is still &er( e!!e$ti&e !or short trips and pleasre $rises-
Sea transport remains the lar#est $arrier o! !rei#ht in the +orld-
.hile slo+er than air transport' modern sea transport is a hi#hl( e!!e$ti&e method o! mo&in#
lar#e "antities o! non/perishable #oods- Transport b( +ater is si#ni!i$antl( less $ostl( than transport
b( air !or trans/$ontinental shippin#-
Ship transport is o!ten international b( natre' bt it $an be a$$omplished b( bar#e' boat' ship
or sailboat o&er a sea' o$ean' la0e' $anal or ri&er- This is !re"entl( nderta0en !or prposes o!
$ommer$e' re$reation or militar( ob,e$ti&es- .hen a $ar#o is $arried b( more than one mode' the
transport is termed Intermodal or $o/modal-
Ships ha&e lon# been sed !or +ar!are' +ith appli$ations !rom na&al sprema$( to pira$('
in&asions and bombardment- Air$ra!t $arriers $an be sed as bases o! a +ide &ariet( o! militar(
operations-
Ship transport is sed !or a &ariet( o! npa$0a#ed ra+ materials ran#in# !rom $hemi$als'
petrolem prod$ts' and bl0 $ar#o s$h as $oal' iron ore' $ereals' ba1ite' and so !orth- So $alled
2#eneral $ar#o2 $o&ers #oods that are pa$0a#ed to some e1tent in bo1es' $ases' pallets' barrels' and
so !orth- Sin$e the 3456s $ontaineri%ation has re&oltioni%ed ship transport
M&4'.20( +.)//)01
7668 re#istration o! mer$hant ships 93'666 #ross re#ister tons 9:;T< and o&er< per $ontr(-
A nation=s shippin# !leet $omprises the ships that operated b( $i&ilian $re+s sed to transport
passen#ers or $ar#o- >ependin# on the nation' the terms mer$hant na&(' mer$hant marine' or
mer$hant !leet ma( be sed to re!er to these &essels- There are a nmber o! terms applied to the
people +ho operate the ships' in$ldin# mer$hant seaman' mer$hant sailor' and mer$hant mariner'
or simpl( seaman' sailor' or mariner- The terms 2seaman2 or 2sailor2 ma( also re!er to a member o! a
$ontr(=s na&(-
A$$ordin# to the 7668 CIA .orld Fa$t boo0' the +orld total nmber o! mer$hant ships o! 3'666
:ross ;e#ister Tons or o&er +as 36'435- Statisti$s !or indi&idal $ontries are a&ailable at the List o!
mer$hant marine $apa$it( b( $ontr(-
P4,-&++),025 324)0&4+
Sea!arers hold a &ariet( o! pro!essions and ran0s' ea$h o! +hi$h $arr( ni"e responsibilities
+hi$h are inte#ral to the s$$ess!l operation o! a sea!arin# &essel- A ship=s $omplement $an
#enerall( be di&ided into !or main $ate#ories: the de$0 department' the en#ineerin# department' the
ste+ard=s department' and other-
D&'6 7&/24(3&0(
An able seaman stands i$eber# loo0ot on the bo+ o! the !rei#hter ?SNS Sothern
Cross drin# a re/sppl( mission to *$*rdo Station' Antar$ti$a) $ir$a 34@3-
O!!i$er positions in the de$0 department in$lde bt not limited to: *aster and his Chie!' Se$ond' and
Third o!!i$ers- The o!!i$ial $lassi!i$ations !or nli$ensed members o! the de$0 department are Able
Seaman and Ordinar( Seaman-
A $ommon de$0 $re+ !or a ship in$ldes:
93< Chie! O!!i$erAChie! *ate
93< Se$ond O!!i$er ASe$ond *ate
93< Third O!!i$er A Third *ate
93< Boats+ain
97/5< Able Seamen
96/7< Ordinar( Seamen
A de$0 $adet is person +ho is $arr(in# ot mandator( sea time to a$hie&e hisAher o!!i$er o! the
+at$h $erti!i$ate- Their time onboard is spent learnin# the operations and tas0s o! e&er(da( li!e on a
mer$hant &essel-
E01)0&&4)01 7&/24(3&0(
A ship=s en#ineerin# department $onsists o! the members o! a ship=s $re+ that operate and
maintain the proplsion and other s(stems on board the &essel- *arine En#ineerin# sta!! also deal
+ith the 2Hotel2 !a$ilities on board' notabl( the se+a#e' li#htin#' air $onditionin# and +ater s(stems-
The( deal +ith bl0 !el trans!ers' and re"ire trainin# in !ire!i#htin# and !irst aid' as +ell as in dealin#
+ith the ship=s boats and other nati$al tas0s/ espe$iall( +ith $ar#o loadin#Adis$har#in# #ear and
sa!et( s(stems' tho#h the spe$i!i$ $ar#o dis$har#e !n$tion remains the responsibilit( o! de$0
o!!i$ers and de$0 +or0ers- On LP: and LN: tan0ers ho+e&er' a $ar#o en#ineer +or0s +ith the de$0
department drin# $ar#o operations' as +ell as bein# a +at$h0eepin# en#ineer-
A $ommon En#ineerin# $re+ !or a ship in$ldes:
93< Chie! En#ineer
93< Se$ond En#ineer A First Assistant En#ineer
93< Third En#ineer A Se$ond Assistant En#ineer
93/7< Forth En#ineer A Third Assistant En#ineer
96/7< Fi!th En#ineer A Bnior En#ineer
93/3< Oiler 9nli$ensed "ali!ied ratin#<
96/3< :reaserAs 9nli$ensed "ali!ied ratin#<
93/8< Entr(/le&el ratin# 9s$h as .iper 9o$$pation<' ?tilit(man' et$<
*an( Ameri$an ships also $arr( a Cali!ied *ember o! the En#ine >epartment- Other possible
positions in$lde *otorman' *a$hinist' Ele$tri$ian' ;e!ri#eration En#ineer' and Tan0er man- En#ine
Cadets are trainee en#ineers +ho are $ompletin# sea time ne$essar( be!ore the( $an obtain a +at$h
0eepin# li$ense-
S(&82479+ 7&/24(3&0(
A t(pi$al Ste+ard=s department !or a $ar#o ship +old be $omposed o! a Chie! Ste+ard' a
Chie! Coo0' and a Ste+ard=s Assistant- All three positions are t(pi$all( !illed b( nli$ensed personnel-
The $hie! ste+ard dire$ts' instr$ts' and assi#ns personnel per!ormin# s$h !n$tions as
preparin# and ser&in# meals) $leanin# and maintainin# o!!i$ers= "arters and ste+ard department
areas) and re$ei&in#' issin#' and in&entor(in# stores-
On lar#e passen#er &essels' the Caterin# >epartment is headed b( the Chie! Prser and
mana#ed b( assistant prsers- Altho#h the( en,o( the bene!its o! ha&in# o!!i$er ran0' the( #enerall(
pro#ress thro#h the ran0s to be$ome prsers- ?nder the prsers are the department heads / s$h
as $hie! $oo0' head +aiter' head barman et$- The( are responsible !or the administration o! their o+n
areas-
The $hie! ste+ard also plans mens) $ompiles sppl(' o&ertime' and $ost $ontrol re$ords- *a(
re"isition or pr$hase stores and e"ipment- *a( ba0e bread' rolls' $a0es' pies' and pastries-
A $hie! ste+ard=s dties ma( o&erlap +ith those o! the Ste+ard=s Assistant' the Chie! Coo0'
and other Ste+ard=s >epartment $re+members-
In the ?nited States *er$hant *arine' in order to be o$$pied as a $hie! ste+ard a person has
to ha&e a *er$hant *ariner=s >o$ment issed b( the ?nited States Coast :ard- Be$ase o!
international $on&entions and a#reements' all $hie! $oo0s +ho sail internationall( are similarl(
do$mented b( their respe$ti&e $ontries-
O(.&4 D&/24(3&0(+
Darios t(pes o! sta!! o!!i$er positions ma( e1ist on board a ship' in$ldin# Bnior Assistant
Prser' Senior Assistant Prser' Prser' Chie! Prser' *edi$al >o$tor' Pro!essional Nrse' *arine
Ph(si$ian Assistant' and Hospital Corpsman' are $onsidered administrati&e positions and are
there!ore re#lated b( Certi!i$ates o! ;e#istr( issed b( the ?nited States Coast :ard- Pilots are
also mer$hant marine o!!i$ers and are li$ensed b( the Coast :ard- Formerl(' there +as also a radio
department' headed b( a $hie! radio o!!i$er and spported b( a nmber o! radio o!!i$ers- Sin$e the
introd$tion o! :*>SS 9Satellite $ommni$ations< and the sbse"ent e1emptions !rom $arr(in#
radio o!!i$ers i! the &essel is so e"ipped' this department has !allen a+a(' altho#h man( ships do
still $arr( spe$ialist radio o!!i$ers' parti$larl( passen#er &essels- *an( radio o!!i$ers be$ame =ele$tro/
te$hni$al o!!i$ers=' and trans!erred into the en#ineerin# department-
L)-& 2( +&2
The tan0er SS O&erseas Ali$e ta0es seas o&er the bo+ drin# a 34@3 rn !rom Ne+ Orleans to
Panama-
*ariners li&e on the mar#ins o! so$iet(' +ith m$h o! their li!e spent be(ond the rea$h o! land-
The( !a$e $ramped' star0' nois(' and sometimes dan#eros $onditions at sea- Yet men and +omen
still #o to sea- For some' the attra$tion is a li!e nen$mbered +ith the restraints o! li!e ashore- Sea/
#oin# ad&entre and a $han$e to see the +orld also appeal to man( sea!arers- .hate&er the $allin#'
those +ho li&e and +or0 at sea in&ariabl( $on!ront so$ial isolation-
Findin#s b( the Sea!arer=s International ;esear$h Center indi$ate a leadin# $ase o! mariners
lea&in# the indstr( is 2almost in&ariabl( be$ase the( +ant to be +ith their !amilies-2 ?-S- mer$hant
ships t(pi$all( do not allo+ !amil( members to a$$ompan( sea!arers on &o(a#es- Indstr( e1perts
in$reasin#l( re$o#ni%e isolation' stress' and !ati#e as o$$pational ha%ards- Ad&o$a$( #rops s$h
as International Labor Or#ani%ation' a ?nited Nations a#en$(' and the Nati$al Institte are see0in#
impro&ed international standards !or mariners-
O$ean &o(a#es are steeped in rotine- *aritime tradition di$tates that ea$h da( be di&ided into
si1 !or/hor periods- Three #rops o! +at$h 0eepers !rom the en#ine and de$0 departments +or0
!or hors on then ha&e ei#ht hors o!! +at$h0eepin#- Ho+e&er there are man( o&ertime ,obs to be
done dail(- This $($le repeats endlessl(' 7E hors a da( +hile the ship is at sea- *embers o! the
ste+ard department t(pi$all( are da( +or0ers +ho pt in at least ei#ht/hor shi!ts- Operations at sea'
in$ldin# repairs' sa!e#ardin# a#ainst pira$(' se$rin# $ar#o' nder+a( replenishment' and other
dties pro&ide opportnities !or o&ertime +or0- OneFs ser&i$e aboard ships t(pi$all( e1tends !or
months at a time' !ollo+ed b( protra$ted shore lea&e- Ho+e&er' some seamen se$re ,obs on ships
the( li0e and sta( aboard !or (ears-
In rare $ases' &eteran mariners $hoose ne&er to #o ashore +hen in port- Frther' the o!ten
"i$0 trnarond o! man( modern ships' spendin# onl( a matter o! hors in port' limits a sea!arer=s
!ree/time ashore- *oreo&er' some !orei#n seamen enterin# ?-S- ports !rom a +at$h list o! 78 hi#h/ris0
$ontries !a$e restri$tions on shore lea&e de to se$rit( $on$erns in a post 4A33 en&ironment-
Ho+e&er' shore lea&e restri$tions +hile in ?-S- ports impa$t Ameri$an seamen as +ell- For e1ample'
the International Or#ani%ation o! *asters' *ates G Pilots notes a trend o! ?-S- shippin# terminal
operators restri$tin# seamen !rom tra&elin# !rom the ship to the terminal #ate- Frther' in $ases +here
transit is allo+ed' spe$ial 2se$rit( !ees2 are at times assessed-
S$h restri$tions on shore lea&e $opled +ith red$ed time in port b( man( ships translate into
lon#er periods at sea- *arinerFs report that e1tended periods at sea li&in# and +or0in# +ith shipmates
+ho !or the most part are stran#ers ta0es #ettin# sed to- At the same time' there is an opportnit( to
meet people !rom a +ide ran#e o! ethni$ and $ltral ba$0#ronds- ;e$reational opportnities ha&e
impro&ed aboard some ?-S- ships' +hi$h ma( !eatre #(ms and da( rooms !or +at$hin# mo&ies'
s+appin# sea stories' and other a$ti&ities- And in some $ases' espe$iall( tan0ers' it is made possible
!or a mariner to be a$$ompanied b( members o! his !amil(- Ho+e&er' a marinerFs o!! dt( time is
lar#el( a solitar( a!!air' prsin# hobbies' readin#' +ritin# letters' and sleepin#-
On modern o$ean #oin# &essels' t(pi$all( re#istered +ith a !la# o! $on&enien$e' li!e has
$han#ed immensel( in the last 76 (ears- *ost lar#e &essels in$lde a #(m and o!ten a s+immin#
pool !or se b( the $re+- Sin$e the E11on Dalde% in$ident' the !o$s o! leisre time a$ti&it( has
shi!ted !rom ha&in# o!!i$er and $re+ bars' to simpl( ha&in# lon#e/st(le areas +here o!!i$ers or $re+
$an sit to +at$h mo&ies- .ith man( $ompanies no+ pro&idin# TDs and >D> pla(ers in $abins' and
en!or$in# stri$t smo0in# poli$ies' it is not srprisin# that the bar is no+ a m$h "ieter pla$e on most
ships- In some instan$es #ames $onsoles are pro&ided !or the o!!i$ers and $re+- The o!!i$ers en,o( a
m$h hi#her standard o! li&in# on board o$ean #oin# &essels- Cre+s are #enerall( poorl( paid' poorl(
"ali!ied and ha&e to $omplete $ontra$ts o! appro1 4 months be!ore retrnin# home on lea&e- The(
o!ten $ome !rom $ontries +here the a&era#e indstrial +a#e is still &er( lo+' s$h as the Philippines
or India- O!!i$ers ho+e&er' $ome !rom all o&er the +orld and it is not n$ommon to mi1 the nationalit(
o! the o!!i$ers on board ships- O!!i$ers are o!ten the re$ipients o! ni&ersit( de#rees and ha&e
$ompleted &ast amonts o! trainin# in order to rea$h their ran0- O!!i$ers bene!it on board b( ha&in#
lar#er' more $om!ortable $abins' table ser&i$e !or their meals' et$- Contra$ts a&era#e at the E month
mar0 !or o!!i$ers' +ith #eneros lea&e- *ost O$ean #oin# &essels no+ operate an ?nmanned En#ine
room S(stem allo+in# en#ineers to +or0 da(s onl(- The en#ine room is $ompter $ontrolled b( ni#ht'
altho#h the dt( en#ineer +ill ma0e inspe$tions drin# nmanned operation- En#ineers +or0 in a
hot' hmid' nois( atmosphere- Commni$ation in the en#ine room is there!ore b( hand si#nals and
lip/readin#' and #ood team+or0 o!ten stands in pla$e o! an( $ommni$ation at all-
L&++,0 2
MODES OF TRANSPORT
.ith the be#innin# o! the $osmi$ era and +ith the in$reasin# $ommer$iali%ation' the demand
!or #oods and prod$ts has been tremendosl( in$reasin# !rom all parts o! the .orld- This means
that the importan$e o! transport $ompanies is on top-
Transport $ompanies are o!!erin# a +ide sele$tion o! ser&i$es to the $stomers +ho are
loo0in# !or shi!tin# their prod$ts or #oods to their desired destination- The( o!ten pro&ide di!!erent
modes o! transport !a$ilities s$h as air' sea' road' and rail- Ho+e&er' there are &arios ad&anta#es
and disad&anta#es +ith the se o! all these modes o! transport-
A7*20(21&+ ,- A)4 T420+/,4(2(),0:
HFastest !or lon# distan$e deli&eries
HCstomer per$eption is hi#h' eas( !or order !l!illment
HDer( sa!e mode o! transport
H;ed$es lead time on sppliers
HImpro&ed ser&i$e le&els
D)+27*20(21&+ ,- A)4 T420+/,4(2(),0:
H;is0(
HPotential !or !li#ht dela(s andAor $an$ellations
HCstoms and E1$ise restri$tions
HE1pensi&e &s- other modes
H?nsitable !or some #oods'
HLimited rotes' and in!le1ible timetables
HEn&ironmental polltion
HAirport ta1es
A7*20(21&+ ,- S&2 T420+/,4(2(),0:
HIdeal !or transportin# hea&( and bl0( #oods
HSitable !or prod$ts +ith lon# lead times
HCheap !or lar#e &olmes
D)+27*20(21&+ ,- S&2 T420+/,4(2(),0:
HDer( slo+' lon#er leadAdeli&er( times
H>i!!i$lt to monitor e1a$t lo$ation o! #oods in transit
HCstoms and E1$ise restri$tions
HCold be $ostl(
HIn!le1ible rotes and timetables
HPort dt(Ata1es
H;e"ires inland transportation !or door/to/door deli&er(
A7*20(21&+ ,- R2)5 T420+/,4(2(),0:
HFast deli&er(
HCapa$it(
HCost e!!e$ti&e
HSa!e mode o! transport
H;eliable
H*ore en&ironmentall( !riendl( than alternati&es
H>oes not add to $on#estion
D)+27*20(21&+ ,- R2)5 T420+/,4(2(),0:
HPotential o! dama#es' !rom shntin#
HSb,e$t to n!oreseen dela(s
H;elian$e on rail !rei#ht operator=s timetable
HSppliersA$stomers are not al+a(s lo$ated near a rail !rei#ht depot and deli&er( toA!rom the depot
$an be $ostl( and time $onsmin#
HLimited rotes' in!le1ible rotes and timetables
A7*20(21&+ ,- R,27 T420+/,4(2(),0:
HCost e!!e$ti&e
HFast deli&er(' Ideal !or short distan$es
HIdeal !or transportin# perishables
HEas( to monitor lo$ation o! #oods
HEas( to $ommni$ate +ith dri&er
HIdeal !or sendin# b( $orier shorta#es to $stomers
HPri&ate
D)+27*20(21&+ ,- R,27 T420+/,4(2(),0
HTransport sb,e$t to tra!!i$ dela(s
HTransport sb,e$t to brea0do+n
H:oods ss$eptible to dama#e thro#h $areless dri&in#
HBad +eather
H>ri&in# re#lations $an $ase dela(s
HPolltes the en&ironment
HLess sa!e than alternati&es
HCan be e1pensi&e +here there are $on#estion or road $har#es-
It is ad&isable to de$ide be!ore (o in&esti#ate a transport $ompan( +hat t(pe o! ser&i$es (o
are loo0in# !or- Some o! the $ommon t(pes o! ser&i$es are door/to/door $ar transport' terminal/to/
terminal transport' spe$ial $ar mo&er' and deli&er( to a spe$i!ied lo$ation-
*an( transport $ompanies are o!!erin# +orld+ide #oods transportation soltions to the
indi&idals or bsiness se$tors- These $ompanies spe$iali%e in reliable and e!!i$ient- The( al+a(s
$ommit in sendin# dama#e/!ree prod$ts at the !inal destination- Ne!ab is a leadin# transport
$ompan( that o!!ers di!!erent modes o! transport !a$ilities !or the $stomersF $on&enien$e arond the
.orld-
N2(:4&-207 S)10)-)'20'&
.ater transport is $onsidered as a portent o! modem $i&ili%ation' a sor$e o! emplo(ment and
an a$ti&e a#ent o! pro#ress and the de&elopment- .ater transport is the oldest and $heapest !orm !or
mo&in# #oods !rom one pla$e to another pla$e- It operates on natral tra$0s and hen$e does not
re"ire h#e $apital in&estments in the $onstr$tion and maintenan$e o! +ater+a(s- The path is
pro&ided b( natre and less in&estment is re"ired in la(in# do+n the tra$0 and its maintenan$e- This
mode o! transport has the lar#est $arr(in# $apa$it( and sitable !or transport o! bl0 #oods o&er lon#
distan$e-
The landmass in the +orld is $onne$ted +ith &arios +ater+a(s thro#h o$ean- >e to thais
$onne$ti&it( the +ater transport is $onsidered as the best means !or transport o! bl0 $ommodities-
This !orm o! transport is e1tensi&el( sed !or the international trade- O$ean transport is !a&orable
be$ase o! #eo#raphi$al !a$t that the o$eans and seas are inter$onne$ted- British Empire $old
establish se&eral $olonies all o&er the +orld de to its +ell/de&eloped' +ell/e"ipped o&erseas +ater
transport s(stem- .ater transport $an easil( $arr( #oods and $ommodities o! lo+ &ales and hi#h
&olme- A!ter dis$o&er( o! &arios o$ean rotes' the e$onomi$ importan$e o! these rotes has been
in$reased si#ni!i$antl(- O$eans are $onsidered to be the $heapest and the sa!est hi#h+a( to $arr(
passen#er and $ar#o- .ater transport $an be $lassi!ied into Inland +ater transport and O$ean
transport-
I05207 "2(&4 T420+/,4(
Transport b( ri&ers' $anals and la0es are re!erred to as =Inland .ater Transport=- Inland
.ater+a(s ha&e #reatl( e1panded drin# 76th $entr( in man( $ontries o! the +orld- It is pla(in# an
important role in internal trade and $ommer$e in man( $ontries- Inland +ater+a(s ma( be natral
s$h as na&i#able ri&ers or la0es or ma(be arti!i$ial s$h as $anals- *an( ri&ers pro&ide natral
+ater+a(s' +hi$h $an be sed !or pro&idin# transport ser&i$es thro#h small boats as +ell as bi#
bar#es- ;i&er transport +as one o! the oldest modes o! transport- It pla(ed a &er( important role prior
to the de&elopment o! modern means o! land transport- It pro&ides transport !a$ilities to ina$$essible
!orest areas and other natral re#ions not $onne$ted b( roads-
Canals are arti!i$ial +ater+a(s basi$all( made !or irri#ation or =na&i#ation or !or the both-
Canals $an be sed as +ater+a(s !or inland +ater transport' bt h#e amont o! $apital in&estment is
re"ired in the $onstr$tion and maintenan$e o! s$h man made arti!i$ial +ater+a(- The $ost o! $anal
transport is hi#her than that o! the ri&er transport- Apart !rom this' pro&idin# ade"ate +ater in the
$anal to !a$ilitate mo&ement o! bi# boats is $onsidered as a bi# problem !or this mode o! transport-
Natral la0es pro&ide transport !a$ilities to its $oastal areas- Altho#h' the distan$e $o&ered b( la0e/
transport is less' it pro&ides lo+ $ost transport !a$ilities to the areas $onne$ted b( the la0es-
A7*20(21&+ ,- I05207 "2(&4 T420+/,4(
3- Inland +ater transport is the $heapest mode !or $ertain 0ind o! tra!!i$ both !or lon# and short hals
pro&ided the points o! ori#in and destination are lo$ated on +ater!ront and no trans/shipment o!
#oods is in&ol&ed-
7- It is also one o! the most e!!i$ient modes o! transport !rom the point o! &ie+ o! ener#( $onsmption-
3- It $an pro&ide immediate a$$ess +here&er +ater e1ists +ithot re"irin# in&estment in line hal
$apa$ities as in other mode o! transport-
E- Inland +ater transport is a labor/intensi&e mode and #enerates more emplo(ment per rpee o!
in&estment than an( other mode and so parti$larl( bene!its +ea0er se$tion o! so$iet(-
8- It pro&ides transport !or hea&(' bl0(' non/perishable and lo+/#rade tra!!i$ +ith a lo+ pri$e relati&e
to +ei#ht +here speed is not an important !a$tor-
5: It pro&ides e$onomi$al means o! transportation o! minerals and other bl0( dr( and li"id ra+
materials !or indstries-
I- Bein# #i!t o! natre' the +ater+a(s re"ire no in&estment !or its maintenan$e-
@- In montain areas' inland +ater transport pro&ides e1$ellent ser&i$e !or do+nhill mo&ement o!
#oods and passen#ers-
L)3)(2(),0+ ,- I05207 "2(&4 T420+/,4(
9i< This !orm o! transport is slo+ as $ompared to other !orms o! land transport-
9ii< Na&i#able +ater+a(s are not perennial in natre in man( areas-
9iii< Transport a$ti&it( be$omes &er( m$h/limited in polar re#ion be$ase !ree%in# o! +ater
ma( $ase hindran$e-
9i&< Hea&( $apital in&estment is also re"ired in $onstr$tion maintenan$e and dred#in#
operation o! $anals-
9&< Climati$ !a$tors e1er$ise #reater in!len$e in $ase o! inland +ater transport than in an(
other mode o! transport i-e-' the rotes are o!ten blo$0ed b( i$e in +inter-
9&i< This !orm o! transport $an be sed +here speed and time are not important- Perishable
prod$ts $annot #enerall( be transported b( inland +ater transport !or a lon#er distan$e-
National .ater+a(s' The :o&ernment o! India has so !ar identi!ied ten important +ater+a(s !or
de$larin# them as =National .ater+a(s=- Three ot o! these ten +ater+a(s ha&e alread( been
de$lared as National .ater+a(s-
T.& 7&(2)5+ N2(),025 82(&482;+ 24& 2+ -,55,8+:
9a< National .ater+a( No-l/9Allahabad and Haldia 6'576 0m< stret$h o! the :an#a/Bha#irathi/Hoo#l(
ri&er s(stem<- Car#o Transportation in the stret$h Haldia/ Fara00a/ Patna are bein# $arried ot b( the
Central Inland .ater Transport Corporation 9CI.>C< and b( :oa Bar#e O+ners= Asso$iation-
9b< National .ater+a( No-7 9@43 0m- The Sadi(a/>hbri stret$h o! the ri&er Brahmaptra<- The
CI.TC is operatin# $ar#o ser&i$es bet+een Cal$tta and :+ahati- = -
9$< National .ater+a( No-3 The Jollam/Jottapram stret$h o! .est Coast Canal 935@ 0m< alon# +ith
Champa0ara Canal 93E 0m in Jerala<- Jeral Shippin# and Inland Na&i#ation Corporation' ABC and
Sons and Hindstan Petrolem Corporation Limited operate $ar#o ser&i$es in this +ater+a(-
The responsibilit( o! de&elopment and maintenan$e o! National .ater+a(s rests +ith the
Inland .ater+a(s Athorit( o! India-
C.24(&4 ,- F:0'(),0+ ,- I05207 "2(&482;+ A:(.,4)(; ,- I07)2 <164=
9i< To $arr( ot e$onomi$ sr&e(s to assess !tre tra!!i$ potential on main ri&ers' !eeders and
$ree0 rotes-
9ii< To dra+ pro#ram o! ri&er $anal $onser&an$( +or0s' in$ldin# ri&er trainin# +or0s and pro&ision
o! na&i#ational aids-
9iii< To dra+ pro#rams o! dred#in# re"irements and priorities !or e!!i$ient maintenan$e o! e1istin#
na&i#able +ater+a(s and !or re&i&al o! dead and d(in# ri&ers' $hannels or $anals !or na&i#ation-
9i&< To de&elop' maintain and operate inland ri&er ports landin# #hats and terminal !a$ilities in
s$h ports or #hats- -
9&< To maintain pilota#e and h(dro#raphi$ sr&e( ser&i$es-
9&i< To disseminate na&i#ational and meteorolo#i$al in!ormation in$ldin# pbli$ation o! ri&er
$harts- '
9&ii< To $arr( ot remo&al o! +re$0s and obstr$tions in na&i#able +ater+a(s-
9&iii< To !i1 ma1imm and minimm !ares and !rei#ht rates !or inland +ater transport on behal! o!
the #o&ernment-
9i1< To appro&e timetables !or passen#er ser&i$es-
91< To ensre $oordination o! inland +ater transport +ith other !orms o! transport' +ith ma,or sea
ports and +ith indstries' trade and a#ri$ltre interests !or optimm tili%ation o! the a&ailable
transport $apa$it(-
91i< To $ond$t resear$h in matter relatin# to inland +ater transport in$ldin# de&elopment o! : 9a<
$ra!t desi#n' 9b< te$hni"es o! to+a#e and 9$< landin# and terminal !a$ilities-
91ii< To arran#e pro#ram o! te$hni$al trainin# !or inland +ater transport personnel-
91iii< To maintain liaison +ith the ship(ards and ship repairin# indstries to meet the re"irements
o! the inland +ater transport !leets' repairs and ne+ $onstr$tions-
91i&< To re#ister $ontr( boats and me$hani%ed $ra!ts and isse o! $erti!i$ate o! !itness !or &essels
pl(in# on +ater+a(s-
91&< To isse permit !or li$ense !or ri#ht o! operations-
91&i< To isse $erti!i$ateAli$ense !or &arios $ate#ories o! $re+ o! inland &assals-
91&ii< To per!orm an( other !n$tions related to I.T assi#ned b( the #o&ernment-
O'&20 T420+/,4(
Na&i#ation thro#h the open sea is 0no+n as o$ean or sea transportation- Na&i#ation alon#
indented or bro0en $oastline is 0no+n as $oastal shippin#- Coastal shippin# is s(non(mos +ith
domesti$ shippin# b( sea bet+een t+o points in the same $ontr(- O$ean transportation is in !a$t an
e1tension o! $oastal shippin# to +ider e1panses o! +ater- So' as !ar as the transportation o! #oods is
$on$erned inland +ater transportation and the $oastal shippin# are o! national and intra/re#ional
importan$e- O$ean transportation is &er( si#ni!i$ant and &ital !or the #ro+th o! international trade-
O$ean transport has its ori#in in the be#innin# o! hman $i&ili%ation- It is $onsidered as an
indispensable means !or de&elopment o! !orei#n trades- It has bro#ht di!!erent parts o! the +orld
$loser !or de&elopin# one bi# +orld mar0et- On a$$ont o! its operation in natral o$ean tra$0s' this
!orm o! transport #enerall( re"ires no in!rastr$tre in&estment !or pro&idin# transport !a$ilit(-
C,2+(25 S.)//)01
Coastal shippin# is the most ener#( e!!i$ient and $omparati&el( $heaper mode o! transport !or
$arria#e o! bl0 tra!!i$s o&er lon# hals' parti$larl( +hen the ori#in and destination o! a tra!!i$ stream
is lo$ated alon# the $oast- It is ideall( sited to $arr( lon# distan$e bl0 $ar#o and passen#er tra!!i$'
espe$iall( !or destinations lo$ated on the +ater!ront- Coastal shippin# $an' pla( an important role in
inte#rated transport net+or0 o! the $ontr(' parti$larl( +hen inland modes are strained-
F2'(,4+ 7&(&43)0)01 O'&20 4,:(&+
:enerall( o$ean #oin# ships !ollo+ +ell/de!ined rotes- The( in #eneral !ollo+ :reat Cir$le
;ote i-e- the shortest distan$e bet+een t+o points- Ho+e&er at times the( ha&e to $hoose di!!erent
rotes be$ase o! ph(si$al and e$onomi$ $onsiderations- The !a$tors responsible !or s$h de&iation
are as !ollo+s:
9a< Sitable +eather $onditions- The rote shold be !ree !rom storm and !o#- Altho#h stron# a#ainst
+ind is not a problem !or smooth sailin# o! the ships' it is desirable to sail the ship +ith +ind !rom
e$onomi$al point o! &ie+ as it sa&es !el $ost- Fo##( and storm( and i$( $oast area shold be
a&oided as !ar as pra$ti$able !or nderta0in# $ommer$ial shippin#-
9b< >eep .aters- Shippin# in shallo+er +ater shold be a&oided- >eepness o! the +ater is a pre/
re"isite !eatre !or smooth sailin# o! the ship- .hile $hoosin# a rote dan#eros shoals and other
perils +hi$h ma( endan#er the sa!et( o! the ship and $arr(in# $ar#o shold be a&oided in this rote-
9$< A&ailabilit( o! Harbors and Ports- The presen$e o! #ood ports and harbors +ith "i$0 loadin# and
nloadin# !a$ilities are also responsible !or $hoosin# a parti$lar rote b( the transporters-
9d< A&ailabilit( o! !ll load o! tra!!i$- The e$onomies o! shippin# transport deals +ith Ship $arr(in# lar#e
&olme o! tra!!i$- ?nless !ll load o! tra!!i$ is #aranteed' the shippin# $ompanies ma( !a$e loss-
Hen$e the( al+a(s tr( to $hoose a parti$lar rote +hen !ll load o! tra!!i$ is #aranteed not onl( on
ot/+ard ,orne( bt also drin# the retrn ,orne(-
9e< A&ailabilit( o! $heaper rote and !el spplies- Ships #enerall( se those $anal rotes +here des
are $omparati&el( less- Frther a&ailabilit( o! !el spplies and ship maintenan$e !a$ilities at di!!erent
ports en$ora#es the shippin# $ompanies to $hoose a parti$lar rote-
9!< Shippin# Ser&i$es- The shippin# ser&i$es are or#ani%ed a$$ordin# to the natre and re"irements
o! #oods tra!!i$ in International trade' +hi$h pro&ides the demand !or s$h ser&i$es- .orld trade $an
be $lassi!ied in to t+o broad $ate#ories' bl0 and non/bl0 dependin# on the t(pe o! $ar#o- Bl0
Car#oes in$lde li"id bl0 li0e petrolem and dr( bl0 li0e ores' !ertili%ers' !ood #rains' et$- Tra!!i$ in
non/bl0 $ate#or( is $omposed o! man!a$tred' semi/man!a$tred' pro$ess and semi/pro$essed
#oods and materials mo&in# in $ases' pa$0a#es' par$els' bales et$- These items are #enerall(
re!erred to as K#eneral mer$handiseL in shippin# parlan$e- So a&ailabilit( o! both t(pes o! $ar#o
ma0es a rote $ommer$iall( &iable-
Lesson 3
BASIC TYPE OF SHIPS
9a< S)015& D&'6 !&++&5+
S$h &essels ha&e one $ontinos de$0' +hi$h means eas( a$$ess +ith one hat$h !or ea$h
hold- The hat$h is an openin# in a ship=s de$0- Hat$hes are sed !or lo+erin# and ta0in# ot lar#e
ob,e$t into and ot o! the $ar#o hold o! a ship- *an( sin#le des0 &essels ha&e lar#e hat$hes and
some are 0no+n as Ksel! trimmers2 be$ase o! the pro&ision !or the $ar#o to !lo+ into all $orners o!
the held- These t(pes o! &essels are sitable onl( !or hea&( bl0 $ar#oes li0e #rain' iron ore' $oal et$-
9b< T8)0 D&'6 !&++&5+
S$h &essels ha&e additional de$0s 9t+in de$0< belo+ the main de$0' rnnin# the !ll len#th o!
the &essel- These &essels are sitable !or #eneral $ar#o- The spa$e is di&ided into separate tiers and
the de$0s eliminate the ris0 o! $ar#o dama#e b( pre&entin# too m$h +ei#ht to be pt on the $ar#o at
the bottom-
9$< S.&5(&4 D&'6 !&++&5+
These &essels ha&e additional de$0 abo&e the main de$0=s shelter de$0' +hi$h pro&ides more
nder de$0/ spa$e !or $arr(in# li#ht $ar#oes- The shelter de$0 &essels ma( be a $lose t(pe or open
t(pe- The di!!eren$e relates to the measrement o! a ship-
9d< O(.&4 T;/&+ ,- !&++&5+
(i) U0)()>&7 '241, +.)/+ 207 +/&')25)>&7 *&++&5+- These t(pes o! &essels in$lde
pallet &essels' bar#e $arriers' $ontainer ships' ;OALO ships' OBOs' #as $arriers'
+ood $arriers' $ar $arriers' oil tan0ers' re!ri#erator ships et$-
(ii) R,55-,0-R,55-,-- +.)/+ <R,-R,=? Ferries are no+ emplo(ed on a mltitde trade
rotes based on ;oll/on/;oll/o!! $on$ept- This !a$ilitates loadin# and nloadin# o! all
t(pes o! $ar#oes +hi$h $an be rolled on hori%ontall( in$ldin# $ars' lorries' and other
+heeled t(pe o! $ar#oes- *ost lar#e ;o/;o &essels $arr( their o+n spe$iall(
desi#ned $ar#o handlin# !a$ilities- This t(pe o! $ar#o handlin# !a$ilities helps to load
and nload a host o! non/+heeled $ommodities s$h as pallets bndled #oods' pre/
sln# ba#s and $ontainers- The $ar#o operations in a ;O/;O ship are e1tremel(
speedier and are independent o! spe$ial shore !a$ilities-
(iii) B241& +.)/+? Bar#e ships are standard si%ed ships' +hi$h $an be to+ed or pshed
b( t#s into ports and island +ater +a(s and +hi$h $an be hoisted abroad spe$ial
Bar#e $arriers +ith adopted e"ipment !or the Sea &o(a#e- Bar#es are not
internationall( standardi%ed- *ain ad&anta#e o! the Bar#e s(stem o&er other
transport s(stem is its red$ed dependen$e on the in!rastr$tre !a$ilities in the ports
and on land- Li0e $ontainers bar#es $an also be prepared spe$iall( !or transportin#
&arios $ommodities assists !or "i$0 trnarond o! pbli$i%ed ships- Darios t(pes o!
bar#es are Lash' Sea/bee' Ba$at' Sper sea/bee-
(iv) C&55:524 +.)/+? S$h ships ha&e holds desi#ned to !orm a series o! $ells into +hi$h
the $ontainers are pla$ed-
(v) P20232@? The bl0 $arriers +ith a breadth +hi$h $an pass thro#h the Panama
Canal 9365 !t +ide< are des$ribed as the panama1 t(pe- S$h bl0 $arriers $arr( p
to @6'666 tonnes o! $ar#o and are poplar as the handi si%ed bl0ers +ith 36'666
d+t-
(vi) B:56&4 ',0(2)0&4 '244)&4? The $ontainer or bl0er is a re$ent de&elopment- S$h
ships are also 0no+n as 2Conbl0ersL-
(vii) !&4; 5241& '4:7& '244)&4+ <!LCC= ?ltra lar#e $rde $arriers 9?LCCs<- DLCCs are
&er( lar#e $rde $arriers +ith a $apa$it( ran#in# bet+een 7' 66'666 to 3' 66'666 d+t-'
+hile ?LCCs are ltra lar#e $rde $arriers in the si%e ran#e o! o&er 3' 66'666 d+t-
9e< M:5()-/:4/,+& !&++&5+
In re$ent (ear=s mlti/prpose &essels ha&e been de&eloped to $ater the need o! transportin# di!!erent
&ariet( o! $ar#o- These &essels $har#e more !or transportin# than liner &essels' bt $heaper than
$ontainer ships' ;o/;o &essels and bar#e ships- These &essels $an be $lassi!ied into !or main
$ate#ories)
9i< C,3$)02(),0 G&0&425 C241, L)0&4 207 C,0(2)0&4+? These &essels are desi#ned to
a$$ommodate not onl( $ontaineri%ed $ar#o bt also #eneral $ar#o-
9ii< C,3$)02(),0 B:56 C244)&4+ 207 C,0(2)0&4 !&++&5+? The open hat$h natre o! man(
modern bl0 $arriers also $arr( $ontaineri%ed $ar#o- The !le1ibilit( o! &essels o! this t(pe
!a$ilitates their se on di!!erent rote- The hat$h is an openin# in a ship=s de$0- hat$hes are
sed !or lo+erin# and ta0in# ot lar#e ob,e$ts into and ot o! the $ar#o hold o! a ship-
9iii< BO-RO *&++&5+? There are ships' +hi$h $an $arr( ;O/;O $ar#o and $ontainers on the
one le# o! the &o(a#e and bl0 $ar#o on the retrn trip-'
9i&< C,3$)02(),0 C,0(2)0&4 207 RO-RO !&++&5? .ith the ad&ent o! mltimodal transport'
these &essels are &er( important- The( #enerall( $arr( $ontainer on de$0 and in the !ront
holds' +hile rollin# $ar#oes are loaded thro#h ;amps o!ten lo$ated in the stern- ;amps are
sloppin# passa#es $onne$tin# t+o di!!erent le&els- These are sed !or mo&ement bet+een
de$0s in ;O/;O ships-
T;/& ,- S.)//)01 S&4*)'&+
Basi$all( there are three t(pes o! shippin# &i%-
9I< Tramp Shippin# or $harterin#'
9II< Liner shippin#' and
9III< Tan0ers shippin#-
I- TRAMP SHIPPING
A$$ordin# to ;o,er Como( 2the tramp is a !rei#ht &essel that does not rn in an( re#lar line bt ta0es
$ar#o +here&er the shippers desire2- Tramps are #enerall( $hartered !or a !ll and $omplete $ar#o- Its
main prpose is the $arr(in# o! !ll shipload o! $ar#o o! +ide &ariet( !rom man( shippers to man(
re$ei&ers- S$h ships o!!er ser&i$es basi$all( on ind$tion- There is no $ommitment to pro&ide the
ser&i$e at a !i1ed rate and a$$ordin# to the s$hedle- .hen a tramp ship is en#a#ed !or $arria#e o!
$ar#o' it is said to be nder $harter as either the +hole o! the bl0 or one $harterer hires its spa$e-
The rates in the tramp mar0et are determined prel( b( the !ree interpla( o! !or$es o! demand and
sppl(-
N2(:4& ,- T423/ T427&
9a< The mar0et !or sppl( and demand !or shippin# ser&i$es o! bl0 $ommodities has been
traditionall( 0no+n as the 2tramp mar0ets2 or 2$hartered mar0et2- Tramp trade re!ers to the bsiness
o! hirin# ot the bl0 $arriers to $arr( $ar#oes o! homo#eneos &ariet( in lar#e "antities !rom one
port to another- A tramp ship means a ship' +hi$h is not $ommitted to an( dis$ipline in terms o! rates'
!or its ser&i$e- Tramps are $ar#o &essels sitable !or mo&ement o! bl0( #oods-
9b< Tramp trade does not ha&e an( !i1ed ports o! loadin# the dis$har#e- There is no periodi$it(
o! shipments and tramps are en#a#ed on terms and $onditions in$ldin# !rei#ht ratesA hire $har#es'
+hi$h is mtall( a#reed bet+een ship o+ners and the $harters-
9$< Tramp o+ners are al+a(s loo0in# !or ports' +here pro!itable $ar#o is li0el( to be !ond-
Charters are loo0in# !or tramps' +hi$h are a&ailable !or hirin# at $ompetiti&e rates- Frei#ht rateA hire/
$har#e in tramp trade is #enerall( de$ided b( the loss o! sppl( and demand o! tonna#eA$ar#oes and
&arios other te$hni$al and $ommer$ial !a$tors- Ths' tramp en#a#ement is a$$omplished +ithot
an( #i&en set o! $onditions and rles-
II? LINER SHIPPING
The mar0et !or shippin# ser&i$es to transport #eneral mer$handise is 0no+n as Liner shippin#-
Liners ships !ollo+ $ertain rotes and pl( on the ad&ertised dates irrespe$ti&e o! the "antit( o! $ar#o
the( re$ei&e !or transportation- Bt' the need to a$hie&e e$onomies in operation' a&ailabilit( o! !ll
load o! $ar#o is a ne$essit(- *an!a$tred and semi/man!a$tred #oods re"ire s$h shippin#
ser&i$es as these #oods $an be !or+arded !rom one point to another in s$h a +a( that the mar0etin#
re"irements are met at re#lar inter&als- The( render speedier shippin# ser&i$es to di!!erent
mar0ets' at reasonable rates o! !rei#ht !or di!!erent items and on a re#lar basis a$$ordin# to a
s$hedle- There are t+o t(pes o! liner shippin#-
9a< P2++&01&4 L)0&4+
These liners primaril( $arr( passen#ers and mails' bt ma( also $arr( $omparati&el( small $ar#o-
These liners ha&e a !ast speed and pro&ide a $om!ortable ser&i$e- In order to ma0e better se o!
$apa$it() passen#er liners emplo( their &essels !or $rises' parti$larl( in the o!!/seasons-
9b< C241, L)0&4+
These liners are the ships meant primaril( !or $arr(in# $ar#o and at the same time also the( $arr( a
!e+ passen#ers- The( also ha&e a rapid speed bt are not as spa$ios as passen#er liners- This t(pe
o! steamer reall( per!orms the !n$tion o! both tramp as +ell as a liner as it $arries lar#e "antities o!
$ar#o and limited nmber o! passen#ers- Some o! the ships are spe$iall( bilt and $ontain !a$ilities o!
$old stora#e and re!ri#eration- These liners are spe$iali%ed in transportin# parti$lar $ar#o- These
liners are e"ipped +ith loadin# and nloadin# e"ipment to and !rom "a(s or li#hters sin# their
o+n #ear e1$lsi&el(- 2=In order to minimi%e manal handlin# $ost' #oods are $ate#ori%ed and
$lassi!ied to meet the re"irements o! me$hani$al handlin#- This $an be done b( $ontaineri%ation-
Palettes or $ontainers pro&ide #reat ease in handlin# $ar#o loads- Both passen#er and $ar#o liners
ha&e re#lar !i1ed rotes' time and rate s$hedles-
III- TANAER SHIPPING
Tan0ers are the &essels' +hi$h are spe$iall( desi#ned to $arr( oil' petrol and s$h other li"ids- Lar#e
si%ed sper tan0ers are no+ bein# bilt to $arr( petrolem prod$ts and other li"id prod$ts !rom the
prod$in# area to the area o! $onsmption-
C.24(&4)01 ,- S.)/+
There are &arios t(pes o! $harterin# o! ships !or $arria#e o! bl0 $ar#oes-
9a< Do(a#e $harter- In $ase o! a &o(a#e $harter:/
i< A ship is $hartered !or the shipment o! an a#reed "antit( o! $ar#o !rom a port to
another a#reed port or ports-
9ii< The $hartered a#rees to pa( a $ertain amont 0no+n as !rei#ht +hi$h $an be
$ompted either on a lmp/sm basis or per ton basis-
9iii< In a &o(a#e $harter the o+ner is not onl( to meet the rnnin# e1penses o! the ship
li0e o!!i$ersA$re+ +a#es' stores' pro&isions' insran$e et$' bt also operatin# e1penses li0e
port $har#es' li#ht des' bn0er $ost et$-
9i&< In &o(a#e $harter' normall( the $ar#o e1penses are borne b( the
$harterAshipperAre$ei&er and hen$e the !rei#ht rate is e1pressed on FIO i-e- 2Free in and ot2-
In some instan$es' the loadin# e1penses are to be borne b( the ship o+ner in +hi$h $ase the
!rei#ht is "oted on 2#ross load2 basis- Sometimes !rei#ht is "oted on FIOT i-e- 2!ree in and
ot trimmed2 or FIOST 2!ree in and ot spot and trimmed2-
9&< The ship o+ner a$ts as the $arrier and responsible !or all e1penses in the rnnin#
and operation o! the ship- The $harterer pa(s onl( the thread $har#es as a#reed pon-
9&i< In a &o(a#e $harter a ship is en#a#ed !or either a sin#le &o(a#e or !or
$onse$ti&eArond &o(a#es !or shipment o! an a#reed "antit( o! $ar#o- The ship o+ner
nderta0es to pro&ide the &essel to the $harterers !or $arria#e o! a#reed $ar#oes !rom one o!
the t+o a#reed ports to be dis$har#ed at the named port or ports +ithin a $ertain ran#e at rates
and $onditions mtall( a#reed in ad&an$e- The ship ma( be pt at the $harterer=s disposal b(
lettin# ot its !ll $apa$it( or part o! it- Some times' the ship=s $apa$it( ma( be let ot to more
than one $harterer' in +hi$h $ase the ship o+ner enters into di!!erent a#reements +ith the
indi&idal $harterer-
9&iii< The ship o+ner nder the &o(a#e $harter are to dire$t the master o! the &essel to
report o! the named port !or the !irst loadin# +ithin a spe$i!ied time period a!ter the
si#nin# o! the a#reement or at or be!ore an a#reed date as stiplated in the
a#reement- I! the &essel does not report !or loadin# a$$ordin#l( the $hatterer ma(
$an$el the $ontra$t or $an $laim dama#e !or an( $onse"ential loss-
C,3/:(2(),0 ,- F4&)1.(? For en#a#in# a tramp on &o(a#e basis the $hatterer has to pa( $ertain
!rei#ht- Frei#ht $an be $ompted either on a lmp/sm basis or per/ton basis- Ths' +here !rei#ht
pa(able is on the a$tal "antit( o! $ar#o loaded' !rei#ht is $al$lated on per/ton basis or on dead
+ei#ht $apa$it( pt on a $hartererFs disposal- Alternati&el( lmp/sm !rei#ht ma( also be $har#ed-
P,4(+
IndiaFs $oastline o! abot 5'666 0m is dotted +ith 33 ma,or and 3@8 other ports- Nearl( 48 per
$ent o! the $ontr(Fs !orei#n $ar#o 9b( &olme< mo&es b( sea and' there!ore' portsAand their
de&elopment assme an important pla$e in poli$( ma0in#- >e&elopment and maintenan$e o! IndiaFs
ma,or ports are the responsibilit( o! the Central :o&ernment' +hile Other Ports are in the Con$rrent
list-
M2%,4 P,4(+
IndiaFs ma,or ports are #o&erned b( the Indian ports A$t 346@ and the *a,or Port Trsts A$t
3453- The !ormer allo+ the Stattor( to de$lare an( port a ma,or port' de!ine port limit' le&( $har#es
et$- +hile the !ormation o! Port trst Boards and &ests the administration $ontrol and mana#ement o!
ma,or ports in these Boards-
>e&elopment o! port a!ter the independen$e' the de&elopment o! ma,or ports +as ta0en p in a
planned manner- *e$hani%ation and moderni%ations o! $ar#o/handlin# !a$ilities at Ports ha&e been a
thrst area in re$ent (ears' +ith emphasis on de&elopment o! dedi$ated in!rastr$tre- >eepenin# o!
ports to re$ei&e la#er &essels has been another priorit( area- Disha0hapatnam and Chennai ports
ha&e alread( been deepened-
N23& ,- (.& 1B 32%,4 /,4(+
Cal$tta' Haldia' Paradeep' *mbai' Chennai' Co$hin' Tti$orin' Ba+aharlal Nehr Port at
Nha&a She&a' Jandla' Disha0hapatnam' Ne+ *an#alore' *arm#ao and Ennore Port Trst-
All these ma,or ports are e"ipped +ith latest material handlin# e"ipment- The $apa$it( o! India
Ports in$reased !rom 76 million tonnes o! $ar#o handlin# in 3483 to 346 million tonnes as on *ar$h
766E- The nmber o! $ar#o &essels handled at ma,or ports is abot 35'666 per annm-
Containeri%ation o! ma,or ports is in$reasin# rapidl(-
Conse"ent pon adoption o! open mar0et e$onom(' Port se$tor has been opened !or pri&ate
in&estment- Darios areas o! Port Fn$tionin# s$h as leasin# ot e1istin# assets o! the port' $reation
o! additional assets' leasin# o! e"ipment !or port handlin# and leasin# o! !loatin# $ra!t !rom pri&ate
se$tor' pilota#e and $apti&e !a$ilities !or port based indstries ha&e been identi!ied !or
parti$ipationAin&estment b( the pri&ate se$tor-
Ship transport infrastructure
For a port to e!!i$ientl( send and re$ei&e $ar#o' it re"ires some infrastructure- Harbors'
seaports and marinas host +ater$ra!t' and $onsist o! $omponents s$h as piers' wharfs' docks and
roadsteads-
A port is a !a$ilit( !or re$ei&in# ships and trans!errin# $ar#o to and !rom them- The( are sall(
sitated at the ed#e o! an o$ean or sea' ri&er' or la0e- Ports o!ten ha&e $ar#o/handlin# e"ipment
s$h as $ranes 9operated b( ste&edores< and !or0li!ts !or se in loadin#Anloadin# o! ships' +hi$h
ma( be pro&ided b( pri&ate interests or pbli$ bodies- O!ten' $anneries or other pro$essin# !a$ilities
+ill be lo$ated &er( $lose b(- Harbor pilots' bar#es and t#boats are o!ten sed to sa!el( mane&er
lar#e ships in ti#ht "arters as the( approa$h and lea&e the do$0s- Ports +hi$h handle international
tra!!i$ +ill ha&e $stoms !a$ilities-
A$$ess to other transport s(stems' s$h as rail and tr$0 terminals $an $ontribte to a port=s
e!!i$ien$(- Some ports !eatre $anals' allo+ !rther mo&ement inland-
The presen$e o! deep +ater in $hannels or berths' the pro&ision o! prote$tion !rom the +ind'
+a&es and storm sr#es and a$$ess to intermodal transportation s$h as trains or tr$0s are $riti$al
to a #ood port- A port mst also ha&e na&i#ational aids s$h as li#hthoses' bo(s and sea mar0s-
Ships and watercraft
Ships and other +ater$ra!t are sed !or ship transport- Darios t(pes $an be distin#ished b(
proplsion' si%e or $ar#o t(pe- ;e$reational or ed$ational $ra!t still se +ind po+er' +hile some
smaller $ra!t se internal $ombstion en#ines to dri&e one or more propellers' or in the $ase o! ,et
boats' an inboard +ater ,et- In shallo+ dra!t areas' s$h as the E&er#lades' some $ra!t' s$h as the
ho&er$ra!t' are propelled b( lar#e psher/prop !ans-
*ost modern mer$hant ships $an be pla$ed in one o! a !e+ $ate#ories' s$h as:
B:56 '244)&4+' s$h as the Sabrina I seen here' are $ar#o ships sed to
transport bl0 $ar#o items s$h as ore or !ood staples 9ri$e' #rain' et$-<
and similar $ar#o- It $an be re$o#ni%ed b( the lar#e bo1/li0e hat$hes on
its de$0' desi#ned to slide otboard !or loadin#- A bl0 $arrier $old be
either dr( or +et- *ost la0es are too small to a$$ommodate bl0 ships'
bt a lar#e !leet o! la0e !rei#hters has been pl(in# the :reat La0es and
St- La+ren$e Sea+a( o! North Ameri$a !or o&er a $entr(-
C,0(2)0&4 +.)/+ are $ar#o ships that $arr( their entire load in tr$0/si%e
$ontainers' in a te$hni"e $alled $ontaineri%ation- The( !orm a $ommon
means o! $ommer$ial intermodal !rei#ht transport- In!ormall( 0no+n as
2bo1 boats'2 the( $arr( the ma,orit( o! the +orld=s dr( $ar#o- *ost
$ontainer ships are propelled b( diesel en#ines' and ha&e $re+s o!
bet+een 36 and 36 people- The( #enerall( ha&e a lar#e a$$ommodation
blo$0 at the stern' dire$tl( abo&e the en#ine room-
T206&4+ are $ar#o ships !or the transport o! !lids' s$h as $rde oil'
petrolem prod$ts' li"e!ied petrolem #as' li"e!ied natral #as and
$hemi$als' also &e#etable oils' +ine and other !ood / the tan0er se$tor
$omprises one third o! the +orld tonna#e-
R&&-&4 +.)/+ are $ar#o ships t(pi$all( sed to transport perishable
$ommodities +hi$h re"ire temperatre/$ontrolled transportation' mostl(
!rits' meat' !ish' &e#etables' dair( prod$ts and other !oodst!!s-
R,55-,0C4,55-,-- +.)/+' s$h as the Chi/Cheeman' are $ar#o ships
desi#ned to $arr( +heeled $ar#o s$h as atomobiles' trailers or rail+a(
$arria#es- ;O;O 9or roAro< &essels ha&e bilt/in ramps +hi$h allo+ the
$ar#o to be e!!i$ientl( 2rolled on2 and 2rolled o!!2 the &essel +hen in port-
.hile smaller !erries that operate a$ross ri&ers and other short distan$es
still o!ten ha&e bilt/in ramps' the term ;O;O is #enerall( reser&ed !or
lar#er o$ean/#oin# &essels-
C,2+(25 (427)01 *&++&5+' also 0no+n as ',2+(&4+' are shallo+/hlled
ships sed !or trade bet+een lo$ations on the same island or $ontinent-
Their shallo+ hlls mean that the( $an #et thro#h ree!s +here sea/
#oin# ships sall( $annot 9sea/#oin# ships ha&e a &er( deep hll !or
spplies and trade et$-<-
F&44)&+ are a !orm o! transport' sall( a boat or ship' bt also other
!orms' $arr(in# 9or ferrying< passen#ers and sometimes their &ehi$les-
Ferries are also sed to transport !rei#ht 9in lorries and sometimes
npo+ered !rei#ht $ontainers< and e&en railroad $ars- *ost !erries
operate on re#lar' !re"ent' retrn ser&i$es- A !oot/passen#er !err( +ith
man( stops' s$h as in Deni$e' is sometimes $alled a +aterbs or +ater
ta1i- Ferries !orm a part o! the pbli$ transport s(stems o! man(
+aterside $ities and islands' allo+in# dire$t transit bet+een points at a
$apital $ost m$h lo+er than brid#es or tnnels- *an( o! the !erries
operatin# in Northern Eropean +aters are roAro ships- See the Herald o!
Free Enterprise and *AS Estonia disasters-
C4:)+& +.)/+ are passen#er ships sed !or pleasre &o(a#es' +here the
&o(a#e itsel! and the ship=s amenities are $onsidered an essential part o!
the e1perien$e- Crisin# has be$ome a ma,or part o! the torism
indstr(' +ith millions o! passen#ers ea$h (ear as o! 7665- The indstr(=s
rapid #ro+th has seen nine or more ne+l( bilt ships $aterin# to a North
Ameri$an $lientele added e&er( (ear sin$e 7663' as +ell as others
ser&i$in# Eropean $lientele- Smaller mar0ets s$h as the Asia/Pa$i!i$
re#ion are #enerall( ser&i$ed b( older tonna#e displa$ed b( ne+ ships
introd$ed into the hi#h #ro+th areas- On the Balti$ sea this mar0et is
ser&ed b( '4:)+& -&44)&+-
C2$5& 52;&4 is a deep/sea &essel desi#ned and sed to la( nder+ater
$ables !or tele$ommni$ations' ele$tri$it(' and s$h- A lar#e
sperstr$tre' and one or more spools that !eed o!! the transom
distin#ish it-
A (:1$,2( is a boat sed to mane&er' primaril( b( to+in# or pshin#
other &essels 9see shippin#< in harbors' o&er the open sea or thro#h
ri&ers and $anals- The( are also sed to to+ bar#es' disabled ships' or
other e"ipment li0e to+boats-
A 74&71&4 9sometimes also $alled a dred#e< is a ship sed to e1$a&ate
in shallo+ seas or !resh +ater areas +ith the prpose o! #atherin# p
bottom sediments and disposin# o! them at a di!!erent lo$ation-
A $241& is a !lat/bottomed boat' bilt mainl( !or ri&er and $anal transport
o! hea&( #oods- *ost bar#es are not sel!/propelled and need to be
mo&ed b( t#boats to+in# or to+boats pshin# them- Bar#es on $anals
9to+ed b( dra!t animals on an ad,a$ent to+path< $ontended +ith the
rail+a( in the earl( indstrial re&oltion bt +ere ot $ompeted in the
$arria#e o! hi#h &ale items de to the hi#her speed' !allin# $osts' and
rote !le1ibilit( o! rail transport-
L&++,0 4
THE MARINE SOCIETY
The *arine So$iet( +as the +orld=s !irst sea!arersF $harit(- In 3I85' at the be#innin# o! the
Se&en Years= .ar a#ainst Fran$e' Astria' ;ssia' S+eden and Sa1on( 9and sbse"entl( Spain
and Port#al< Britain r#entl( needed to re$rit men !or the na&(- Bonas Han+a( 93I37/3I@5<' +ho
had alread( made his mar0 as a tra&eller' ;ssia Compan( mer$hant' +riter and philanthropist' mst
ta0e the $hie! $redit !or !ondin# the so$iet( +hi$h both $ontribted to the soltion o! that parti$lar
problem' and has $ontined !or the ne1t t+o and a hal! $entries to assist man( thosands o! (on#
people in preparin# !or a $areer at sea-
Formation
Pla"e mar0in# site o! the !ondation o! the *arine So$iet(
The *arine So$iet(' is the +orldFs oldest pbli$ maritime $harit(' and +as the brain$hild o! a
#rop o! London mer$hants and #entlemen' +ho !irst met at the Jin#Fs Arms Ta&ern' Cornhill' London
on Bne 78th 3I85 to dis$ss a plan to sppl( t+o or three thosand mariners !or the na&(-
;e$ritment be#an immediatel(- Sponsors +ere so#ht and ad&ertisements !or &olnteers appeared
in ne+spapers and on the street:
2Notice is hereby given, that all stout lads and boys, who incline to go on board His Majestys Ships,
with a view to learn the duty of a seaman, and are, upon examination, approved by The Marine
Society, shall be handsomely clothed and provided with bedding, and their charges born down to the
ports where His Majestys Ships lye, with all other proper encouragement2
Ten men +ere dl( $lothed and deli&ered to ships o! the Jin#Fs na&(- In this small +a( be#an
the +or0 o! The *arine So$iet(- The main ob,e$t o! the $harit( +hen !onded +as sendin#
nemplo(ed or orphaned teena#ers to sea as o!!i$ers= ser&ants- The ;o(al Na&( +as estimated to
need abot E'866 bo(s as ser&ants drin# +artime- Appro1imatel( a thosand +ere =(on#
#entlemen= intendin# to be o!!i$ers' and man( o! the remainder +ere spplied b( the So$iet(- As the
bo(s +ere !or the most part !rom non/sea!arin# !amilies the So$iet( probabl( pro&ided a real in$rease
o! se&eral thosand to the pool o! na&al re$ritment- The So$iet( also pro&ided o&er ten thosand
na&al re$rits +ith !ree $lothin#' +hi$h helped red$e the t(phs problem-
Incorporated by Act of Parliament
The s$heme reall( too0 o!!- B( 3I53' the So$iet( had re$rited o&er 36'666 men and bo(s) in
3II7' s$h +as its per$ei&ed importan$e in the li!e o! the nation' it +as in$orporated in an A$t o!
Parliament- Admiral Nelson be$ame a stal+art spporter and trstee o! the $harit(' s$h that b( the
time o! the Battle o! Tra!al#ar 93@68< at least 38M o! British manpo+er +as bein# spplied' trained
and e"ipped b( The *arine So$iet(- The relati&e pro!essionalism o! these men' the #reat British
na&al hero readil( a$0no+led#ed' pla(ed a part in his &i$tories-
Hostilities cease, Education starts
Bt the end o! hostilities meant that na&al re$ritment +as no lon#er the nationFs !irst priorit('
altho#h Admiral Bos$a+en +as later to +rite: 2No scheme for manning the navy, within my
!nowledge, has ever had the success as the Marine Societys2
Han+a( no+ !ormlated plans !or trans!errin# bo(s to the mer$hant ser&i$e on their dis$har#e
!rom na&al ships and !rom then on' the So$iet( +as e"all( in&ol&ed +ith both ;o(al and *er$hant
na&ies-
Earl( reports !rom $ommandin# o!!i$ers had indi$ated that the nmber o! desertions mi#ht be
red$ed i! bo(s e"ipped b( the So$iet( +ere #i&en a period o! trainin# be!ore bein# sent to sea-
Initiall( the So$iet( hired a s$hoolmaster and bandmaster to tea$h some o! the bo(s and in
3I@5 pr$hased a mer$hant ship the Beatt(' +hi$h +as $on&erted to a trainin# ship and renamed
*arine So$iet(- The So$iet( ths be$ame the !irst or#anisation in the +orld to pioneer nati$al
trainin# !or bo(s in its spe$ial s$hool ship +hi$h +as moored in the Thames bet+een >ept!ord and
:reen+i$h-
This e1ample +as !ollo+ed in the nineteenth $entr( b( man( other or#anisations in ports
rond the British Isles- From 3I44 ntil 343@ The Admiralt( pro&ided a s$$ession o! trainin# ships'
the last t+o o! +hi$h +ere renamed "ar spite- In 3477 the So$iet( $ommissioned H*S Hermione as
the third "ar spite- Ho+e&er the otbrea0 o! the Se$ond .orld .ar !or$ed the So$iet( to e&a$ate
the ship o+in# to the probabilit( o! air atta$0-
From 3I85 to 34E6 the So$iet( re$rited o&er 336'666 men and bo(s !or the ;o(al Na&(' the
British East India Compan( and *er$hant ser&i$e- ;e$ords sho+ that !rom 3I85 to 3@38 the $harit(
pro&ided some t+el&e per$ent o! na&al manpo+er' all the more &alable to the nation sin$e ea$h one
+as a &olnteer-
After the Second World War
A!ter the Se$ond .orld .ar' the So$iet( $on$lded that there +ere b( then s!!i$ient !a$ilities
!or sea/trainin# pro&ided b( national athorities- It $ontined to pro&ide sea/0its !or man( (on#
sea!arers and' +here ne$essar(' o!!ered #rants !or their ed$ation' bt in the 3486s the So$iet(
be#an to insist that $adets ths helped shold ha&e $ompleted a #ood #eneral ed$ation' obtainin# a
minimm o! !or :CE passes at O le&el- In this +a( The *arine So$iet( pioneered +hat +as
sbse"entl( a$$epted as standard pra$ti$e !or the entr( o! o!!i$ers into the *er$hant Na&(-
Bet+een 34E6 and 34@I' as the So$iet(Fs reser&es in$reased' +as not onl( able to help
indi&idal sea!arers bt also to ma0e #rants to man( maritime $harities- In 34@3 it pro&ided the base
!nds !or the *arine Ad&entre Sailin# Trst' a limited li!e in&estment trst !nd' +hi$h enabled it to
ma0e !rther sbstantial #rants to the Sea Cadet Corps' TS Fodro(ant' O$ean Yoth Clb and other
maritime (oth $harities-
In 34I5 the So$iet( amal#amated +ith &arios other maritime $harities +ith similar aims'
in$ldin# the In$orporated Thames Nati$al Trainin# Trst 9H*S "orcester<' the Sea!arers
Ed$ation Ser&i$e The *arine So$iet( Colle#e o! the Sea' the Sailors= Home and ;ed Ensi#n Clb'
the *er$hant Na&( Com!orts Ser&i$e Trst and the British Ship Adoption So$iet(- The mer#er o! the
Sea!arers Ed$ation Ser&i$e +ith The *arine So$iet( at this time +as h#el( si#ni!i$ant and helped
to ensre the $ontined rele&an$e o! both operations- The SES $onsisted o! the Colle#e o! the Sea
and Sea!arers Libraries the *arine So$iet( Colle#e o! the Sea' and had been ina#rated in 3434 b(
Albert *ansbrid#e +ho had earlier !onded the .or0ers Ed$ational Asso$iation- Both the Colle#e o!
the Sea and Sea!arers Libraries $ontine to !lorish toda(-
For the past 36 (ears' the prin$ipal ob,e$ti&es o! The *arine So$iet( ha&e been to !a$ilitate
and to pro&ide pra$ti$al and !inan$ial spport !or the ed$ation' trainin# and +ell/bein# o! all
pro!essional sea!arers and to en$ora#e (on# people to embar0 on maritime $areers-
For man( (ears The *arine So$iet( has had stron# ties +ith the Sea Cadet Corps' not onl( as
bene!a$tor and landlord to the SCA' bt also b( pro&idin# sea trainin# opportnities !or hndreds o!
sea $adets ea$h (ear-
It +as be$ase o! these ties pls the $omplementar( ob,e$ti&es o! the t+o $harities and' more
spe$i!i$all(' the mtal desire to introd$e an element o! *er$hant Na&( ethos to the Sea Cadet
Corps' that the mer#er o! the Sea Cadet Asso$iation +ith The *arine So$iet( $ame abot 36
No&ember 766E- The ne+ $harit( thereb( $reated is 0no+n as The *arine So$iet( G Sea Cadets-
As the ?JFs lar#est maritime $harit(' the *arine So$iet( and Sea Cadets e1ists to o!!er
sea!arers and prospe$ti&e sea!arers a ran#e o! ser&i$es to enhan$e their +ell/bein# and li!est(le- The
$ombination o! these t+o po+er!l brands also ma0es !or a potent !or$e in the promotion o! maritime
$areers and the tas0 o! raisin# the pro!ile o! shippin# and its importan$e- Its ed$ation deli&er( arm is
The *arine So$iet( Colle#e o! the Sea The *arine So$iet( Colle#e o! the Sea
T427& 4,:(&
A trade rote is a lo#isti$al net+or0 identi!ied as a series o! path+a(s and stoppa#es sed !or
the $ommer$ial transport o! $ar#o- Allo+in# #oods to rea$h distant mar0ets' a sin#le trade rote
$ontains lon# distan$e arteries +hi$h ma( !rther be $onne$ted to se&eral smaller net+or0s o!
$ommer$ial and non $ommer$ial transportation-
Histori$all(' the period !rom 3837 BCEN3 CE sa+ the .estern Asian' *editerranean' Chinese
and Indian so$ieties de&elop ma,or transportation net+or0s !or trade- Erope=s earl( tradin# rotes
in$lded the Amber ;oad' +hi$h ser&ed as a dependable net+or0 !or lon# distan$e trade- *aritime
trade alon# the Spi$e rote be$ame prominent drin# the middle a#es) nations resorted to militar(
means !or $ontrol o! this in!lential rote- >rin# the *iddle A#es or#ani%ations s$h as the
Hanseati$ Lea#e' aimed at prote$tin# interests o! the mer$hants and trade' also be$ame
in$reasin#l( prominent-
.ith the ad&ent o! modern times' $ommer$ial a$ti&it( shi!ted !rom the ma,or trade rotes o! the
Old .orld to ne+er rotes bet+een modern nation states- This a$ti&it( +as sometimes $arried ot
+ithot traditional prote$tion o! trade and nder international !ree trade a#reements' +hi$h allo+ed
$ommer$ial #oods to $ross borders +ith rela1ed restri$tions- Inno&ati&e transportation o! the modern
times in$ldes pipeline transport' and the relati&el( +ell 0no+n trade sin# rail rotes' atomobiles
and $ar#o airlines-
D&*&5,/3&0( ,- &245; 4,:(&+
E245; 7&*&5,/3&0(
The period e1tendin# !rom the middle o! the 7nd millennim BCE to the be#innin# o! the
Common Era sa+ the .estern Asian' *editerranean) Chinese and Indian so$ieties de&elop ma,or
transportation net+or0s !or trade-
One o! the &ital instrments +hi$h !a$ilitated lon# distan$e trade +as porta#e and the
domesti$ation o! beasts o! brden- Or#ani%ed $ara&ans' &isible b( the 7nd millennim BCE' $old
$arr( #oods a$ross a lar#e distan$e as !odder +as mostl( a&ailable alon# the +a(- The domesti$ation
o! $amels allo+ed Arabian nomads to $ontrol the lon# distan$e trade in spi$es and sil0 !rom the Far
East to the Arabian Peninsla- Ho+e&er' $ara&ans +ere se!l in lon#/distan$e trade lar#el( !or
$arr(in# l1r( #oods' the transportation o! $heaper #oods a$ross lar#e distan$es +as not pro!itable
!or $ara&an operators- .ith prod$ti&e de&elopments in iron and bron%e te$hnolo#ies' ne+er trade
rotes / dispensin# inno&ations o! $i&ili%ations / be#an to rise slo+l(-
M24)()3& (427&
Disible maritime trade bet+een $i&ili%ations $an be tra$ed ba$0 to at least t+o millennia-
Na&i#ation +as 0no+n in smmer bet+een the Eth and the 3rd millennim BCE' and +as probabl(
0no+n b( the Indians and the Chinese people be!ore the Smerians- The E#(ptians had trade rotes
thro#h the ;ed sea' importin# spi$es !rom the 2Land o! Pnt2 9East A!ri$a< and !rom Arabia-
*aritime trade be#an +ith sa!er $oastal trade and e&ol&ed +ith the maniplation o! the monsoon
+inds' soon resltin# in trade $rossin# bondaries s$h as the Arabian Sea and the Ba( o! Ben#al-
Soth Asia had mltiple maritime trade rotes +hi$h $onne$ted it to Sotheast Asia' thereb( ma0in#
the $ontrol o! one rote resltin# in maritime monopol( di!!i$lt- Indian $onne$tions to &arios
Sotheast Asian states b!!ered it !rom blo$0a#es on other rotes- B( ma0in# se o! the maritime
trade rotes' bl0 $ommodit( trade be$ame possible !or the ;omans in the 7nd $entr( BCE- A
;oman tradin# &essel $old span the *editerranean Sea in a month at one/si1tieth the $ost o! o&er/
land rotes-
!)+)$5& (427& 4,:(&+
The peninsla o! Anatolia la( on the $ommer$ial land rotes to Erope !rom Asia as +ell as the
sea rote !rom the *editerranean to the Bla$0 Sea-
O35P
;e$ords !rom the 34th $entr( BCE attest to
the e1isten$e o! an Ass(rian mer$hant $olon( at Janesh in Cappado$ia 9no+ in modern Tr0e(<-
O35P
Tradin# net+or0s o! the Old .orld in$lded the :rand Trn0 ;oad o! India and the In$ense ;oad o!
Arabia-
O7P
A transportation net+or0 $onsistin# o! hard/sr!a$ed hi#h+a(s' sin# $on$rete made !rom
&ol$ani$ ash and lime' +as bilt b( the ;omans as earl( as 337 BCE' drin# the times o! the Censor
Appis Cladis Cae$s- Parts o! the *editerranean +orld' ;oman Britain' Ti#ris/Ephrates ri&er
s(stem and North A!ri$a !ell nder the rea$h o! this net+or0 at some point o! their histor(-
A$$ordin# to ;obert Allen >enemar0 97666<:
2The spread o! rban tradin# net+or0s' and their e1tension alon# the Persian :l! and eastern
*editerranean' $reated a $omple1 mole$lar str$tre o! re#ional !o$i so that as +ell as the %onation
o! $ore and peripher( 9ori#inall( $reated arond *esopotamia< there +as a series o! intera$tin#
$i&ili%ations: *esopotamia' E#(pt' the Inds Dalle() then also S(ria' $entral Anatolia 9Hittites< and the
Ae#ean 9*inoans and *($enaeans<- Be(ond this +as a mar#in +hi$h in$lded not onl( temperate
areas s$h as Erope' bt the dr( steppe $orridor o! $entral Asia- This +as trl( a +orld s(stem' e&en
tho#h it o$$pied onl( a restri$ted portion o! the +estern Old .orld- .hilst ea$h $i&ili%ation
emphasi%ed its ideolo#i$al atonom(' all +ere identi!iabl( part o! a $ommon +orld o! intera$tin#
$omponents-2
These rotes / spreadin# reli#ion' trade and te$hnolo#( / ha&e histori$all( been &ital to the
#ro+th o! rban $i&ili%ation- The e1tent o! de&elopment o! $ities' and the le&el o! their inte#ration into
a lar#er +orld s(stem' has o!ten been attribted to their position in &arios a$ti&e transport net+or0s-
C,3$)0&7 5207 207 82(&482; 4,:(&+
I0'&0+& R,:(&
The e$onom( o! the Jin#dom o! Cataban 9li#ht ble< +as based on the $lti&ation and trade o!
spi$es and aromati$s in$ldin# !ran0in$ense and m(rrh- These +ere e1ported to the *editerranean'
India and Ab(ssinia +here the( +ere #reatl( pri%ed b( man( $ltres' sin# $amels on rotes thro#h
Arabia' and to India b( sea-
The In$ense ;ote ser&ed as a $hannel !or tradin# o! Indian' Arabian and East Asian #oods-
The in$ense trade !lorished !rom Soth Arabia to the *editerranean bet+een ro#hl( the 3rd
$entr( BCE to the 7nd $entr( CE- This trade +as $r$ial to the e$onom( o! Yemen and the
!ran0in$ense and m(rrh trees +ere seen as a sor$e o! +ealth b( its rlers-
Ptolem( II Philadelphs' emperor o! Ptolemai$ E#(pt' ma( ha&e !or#ed an allian$e +ith the
Lih(anites in order to se$re the in$ense rote at >edan' thereb( rerotin# the in$ense trade !rom
>edan to the $oast alon# the ;ed Sea to E#(pt- I- E- S- Ed+ards $onne$ts the S(ro/Ephraimite .ar
to the desire o! the Israelites and the Aramaeans to $ontrol the northern end o! the In$ense rote'
+hi$h ran p !rom Sothern Arabia and $old be tapped b( $ommandin# Trans,ordan-
:errha / inhabited b( Chaldean e1iles !rom Bab(lon / $ontrolled the In$ense trade rotes
a$ross Arabia to the *editerranean and e1er$ised $ontrol o&er the tradin# o! aromati$s to Bab(lon in
the 3st $entr( BC- The Nabateans e1er$ised $ontrol o&er the rotes alon# the In$ense ;ote' and
their hold +as $hallen#ed / +ithot s$$ess / b( Anti#ons C($lops' emperor o! S(ria and Palestine-
The Nabatean $ontrol o&er trade !rther in$reased and spread in man( dire$tions-
The repla$ement o! :ree$e b( the ;oman Empire as the administrator o! the *editerranean
basin led to the resmption o! dire$t trade +ith the East and the elimination o! the ta1es e1tra$ted
pre&iosl( b( the middlemen o! the soth- A$$ordin# to *ilo Jearne( 97663< 2The Soth Arabs in
protest too0 to pirate atta$0s o&er the ;oman ships in the :l! o! Aden- In response' the ;omans
destro(ed Aden and !a&ored the .estern Ab(ssinian $oast o! the ;ed Sea-2 Indian ships sailed to
E#(pt as the maritime rotes o! Sothern Asia +ere not nder the $ontrol o! a sin#le po+er-
P4&-C,5:3$)20 (427&
Some similarities bet+een the *esoameri$an and the Andean $ltres s##est that the t+o
re#ions be$ame a part o! a +ider +orld s(stem' as a reslt o! trade' b( the 3st millennim BCE- The
$rrent a$ademi$ &ie+ is that the !lo+ o! #oods a$ross the Andean slopes +as $ontrolled b(
instittions distribtin# lo$ations to lo$al #rops' +ho +ere then !ree to a$$ess them !or tradin#- This
trade a$ross the Andean slopes / des$ribed sometimes as 2&erti$al trade2 / ma( ha&e o&ershado+ed
the lon# distan$e trade bet+een the people o! the Andes and the nei#hborin# !orests- The Calla+a(a
herbalists traded in tropi$al plants bet+een 5th and the 36th $entries' +hile $opper +as dealt b(
spe$iali%ed mer$hants in the Per&ian &alle( o! Chin$ha- Lon# distan$e trade ma( ha&e seen lo$al
elites resortin# to str##le in order !or maniplation and $ontrol-
Prior to the In$a dominan$e' spe$iali%ed lon# distan$e mer$hants pro&ided the hi#hlanders
+ith #oods s$h as #old n##ets' $opper hat$hes' $o$oa' salt et$- !or redistribtion amon# the lo$als'
and +ere 0e( pla(ers in the politi$s o! the re#ion- Hat$het shaped $opper $rren$( +as prod$ed b(
the Per&ian people' in order to obtain &alables !rom pre Colmbian E$ador- A maritime e1$han#e
s(stem stret$hed !rom the +est $oast o! *e1i$o to sothernmost Per' tradin# mostl( in Spond(ls'
+hi$h represented rain' !ertilit( and +as $onsidered the prin$ipal !ood o! the #ods b( the people o! the
In$a Empire- Spond(ls +as sed in elite ritals and the e!!e$ti&e redistribtion o! it had politi$al
e!!e$t in the Andes drin# the pre/Hispani$ times-
S)56 R,:(&
Tradin# rotes sed arond the 3st $entr( CE $entred on the Sil0 ;oad-
The Sil0 road +as one o! the !irst trade rotes to ,oin the Eastern and the .estern +orlds-
A$$ordin# to Dadime Elissee!! 97666<:
2Alon# the Sil0 ;oads' te$hnolo#( tra&eled' ideas +ere e1$han#ed' and !riendship and
nderstandin# bet+een East and .est +ere e1perien$ed !or the !irst time on a lar#e s$ale-
Easterners +ere e1posed to .estern ideas and li!e/st(les' and .esterners too' learned abot
Eastern $ltre and its spiritalit(/oriented $osmolo#(- Bddhism as an Eastern reli#ion re$ei&ed
international attention thro#h the Sil0 ;oads-2
Cltral intera$tions patroni%ed o!ten b( po+er!l emperors' s$h as Janish0a' led to
de&elopment o! art de to introd$tion o! a ri$h &ariet( o! in!len$es- Bddhist missions thri&ed alon#
the Sil0 ;oads' partl( de to the $ond$i&e intermi1in# o! trade and $ltral &ales' +hi$h $reated a
series o! sa!e stoppa#es !or both the pil#rims and the traders- Amon# the !re"ented rotes o! the
Sil0 ;ote +as the Brmese rote e1tendin# !rom Bhamo' +hi$h ser&ed as a path !or *ar$o Polo=s
&isit to Ynnan and Indian Bddhist missions to Canton in order to establish Bddhist monasteries-
This rote / o!ten nder the presen$e o! hostile tribes / also !inds mention in the +or0s o! ;ashid al/
>in-
G4207 T4:06 R,27
For $entries' the :rand Trn0 ;oad has ser&ed as the main arter( !or tra&el a$ross Northern
India- A s$ene !rom the Ambala $antonment drin# the da(s o! the British ;a,-
The :rand Trn0 ;oad / $onne$tin# Cal$tta in India to Pesha+ar in Pa0istan / has e1isted !or
o&er t+o and a hal! millennia- One o! the important trade rotes o! the +orld' this road has been a
strate#i$ arter( +ith !ortresses' haltin# posts' +ells' post o!!i$es' milestones and other !a$ilities- Part
o! this road thro#h Pa0istan also $oin$ided +ith the Sil0 ;oad-
This hi#h+a( has been asso$iated +ith emperors Chandra#pta *ar(a and Sher Shah Sri)
the latter be$ame s(non(mos +ith this rote de to his role in ensrin# the sa!et( o! the tra&elers
and the p0eep o! the road- Emperor Sher Shah +idened and reali#ned the road to other rotes' and
pro&ided appro1imatel( 3I66 roadside inns thro#h his empire- These inns pro&ided !ree !ood and
lod#in#s to the tra&elers re#ardless o! their stats-
The British o$$pation o! this road +as o! spe$ial si#ni!i$an$e !or the British ;a, in India-
Brid#es' path+a(s and ne+er inns +ere $onstr$ted b( the British !or the !irst thirt( se&en (ears o!
their rei#n sin$e the o$$pation o! Pn,ab in 3@E4- The British !ollo+ed ro#hl( the same ali#nment
as the old rotes' and at some pla$es the ne+er rotes ran parallel to the older rotes-
Dadime Elissee!! 97666< $omments on the :rand Trn0 ;oad:
2Alon# this road mar$hed not onl( the mi#ht( armies o! $on"erors' bt also the $ara&ans o!
traders' s$holars' artists' and $ommon !ol0- To#ether +ith people' mo&ed ideas' lan#a#es' $stoms'
and $ltres' not ,st in one' bt in both dire$tions- At di!!erent meetin# pla$es / permanent as +ell as
temporar( / people o! di!!erent ori#ins and !rom di!!erent $ltral ba$0#ronds' pro!essin# di!!erent
!aiths and $reeds' eatin# di!!erent !oods' +earin# di!!erent $lothes' and spea0in# di!!erent lan#a#es
and diale$ts +old meet one another pea$e!ll(- The( +old nderstand one another=s !ood' dress'
manner' and eti"ette' and e&en borro+ +ords' phrases' idioms and' at times' +hole lan#a#es !rom
others-2
A3$&4 R,27
The Amber ;oad +as a Eropean trade rote asso$iated +ith the trade and transport o!
amber- Amber satis!ied the $riteria !or lon# distan$e trade as it +as li#ht in +ei#ht and +as in hi#h
demand !or ornamental prposes arond the *editerranean- Be!ore the establishment o! ;oman
$ontrol o&er areas s$h as Pannonia' the Amber ;oad +as &irtall( the onl( rote a&ailable !or lon#
distan$e trade-
To+ns alon# the Amber ;oad be#an to rise steadil( drin# the 3st $entr( CE' despite the
troop mo&ements nder Tits Fla&is Despasians and his son Tits Fla&is >omitians- ?nder the
rei#n o! Tiberis Caesar A#sts' the Amber ;oad +as strai#htened and pa&ed a$$ordin# to the
pre&ailin# rban standards- ;oman to+ns be#an to appear alon# the road' initiall( !onded near the
site o! Celti$ oppida- The 3rd $entr( sa+ the >anbe ri&er be$ome the prin$ipal arter( o! trade'
e$lipsin# the Amber ;oad and other $ommer$ial rotes- The redire$tion o! in&estment to the
>anbian !orts sa+ the to+ns alon# the Amber ;oad #ro+in# slo+l(' tho#h (et retainin# their
prosperit(- The prolon#ed str##le bet+een the ;omans and the barbarians !rther le!t its mar0 on
the to+ns alon# the Amber ;oad-
!)2 M24)+
Dia *aris' literall( Latin !or 2the +a( o! the sea'2 +as an an$ient hi#h+a( sed b( the ;omans
and the Crsaders- The states $ontrollin# the Dia *aris +ere in a position to #rant a$$ess !or trade to
their o+n $iti%ens and $olle$t tolls !rom the otsiders to maintain the trade rote- The name #ia Maris
is a Latin translation o! a Hebre+ phrase related to Isaiah- >e to the Bibli$al si#ni!i$an$e o! this
an$ient rote' man( attempts to !ind its present da( lo$ation ha&e been made b( Christian pil#rims-
33th $entr( tra&eler and pil#rim Br$hard o! *ont Qion re!ers to the Dia *aris rote as a +a(
leadin# alon# the shore o! the Sea o! :alilee-
T420+ S2.2420 (427&
*ap indi$atin# lo$ations +ith si#ni!i$ant nmbers o! Tare# people' +ho e1er$ised in!len$e
o&er the Trans Saharan Trade-
Earl( *slim +ritin#s $on!irm that the people o! .est A!ri$a operated a sophisti$ated net+or0
o! trade' sall( nder the athorit( o! a monar$h +ho le&ied ta1es and pro&ided brea$rati$ and
militar( spport to his 0in#dom- Sophisti$ated me$hanisms !or the e$onomi$ and politi$al
de&elopment o! the in&ol&ed A!ri$an areas +ere in pla$e be!ore Islam !rther stren#thened trade'
to+ns and #o&ernment in +estern A!ri$a- The $apital' $ort and trade o! the re#ion !ind mention in the
+or0s o! s$holar AbR =?ba(d =Abd AllSh al/Ba0rT) the mainsta( o! the trans Saharan trade +as #old
and salt-
The po+er!l Saharan tribes' Berber in ori#in and later adaptin# to *slim and Arab $ltres'
$ontrolled the $hannels to +estern A!ri$a b( ma0in# e!!i$ient se o! horse/dra+n &ehi$les and pa$0
animals- The Son#hai en#a#ed in a str##le a#ainst the Sa=di d(nast( o! *oro$$o o&er the $ontrol o!
the trans Saharan trade' resltin# in dama#e on both sides and a +ea0 *oro$$an &i$tor(' !rther
stren#thenin# the nin&ol&ed Saharan tribes- Str##les and distrban$es $ontined till the 3Eth
$entr(' b( +hi$h the *andU mer$hants +ere tradin# +ith the Hasa' bet+een La0e Chad and the
Ni#er-
OE@P
Ne+er trade rotes de&eloped !ollo+in# e1tension o! trade-
H20+&2()' (427&
*ain tradin# rotes o! the Hanseati$ Lea#e-
Shortl( be!ore the 37th $entr( the :ermans pla(ed a relati&el( modest role in the north
Eropean trade- Ho+e&er' this +as to $han#e +ith the de&elopment o! Hanseati$ trade' as a reslt o!
+hi$h :erman traders be$ame prominent in the Balti$ and the North Sea re#ions- Follo+in# the
death o! Eri$ DI o! >enmar0' :erman !or$es atta$0ed and sa$0ed >enmar0' brin#in# +ith them
artisans and mer$hants nder the ne+ administration +hi$h $ontrolled the Hansa re#ions- >rin# the
third "arter o! the 3Eth $entr( the Hanseati$ trade !a$ed t+o ma,or di!!i$lties: e$onomi$ $on!li$t
+ith the Flanders and hostilities +ith >enmar0- These e&ents led to the !ormation o! an or#ani%ed
asso$iation o! Hanseati$ to+ns' +hi$h repla$ed the earlier nion o! :erman mer$hants- This ne+
Hansa o! the to+ns / aimed at prote$tin# interests o! the mer$hants and trade / be$ame prominent !or
the ne1t hndred and !i!t( (ears-
Philippe >ollin#er asso$iates the do+n!all o! the Hansa to a ne+ allian$e bet+een Lbe$0'
Hambr# and Bremen' +hi$h otshado+ed the older instittion- He !rther sets the date o! dissoltion
o! the Hansa at 3536 and $on$ldes that the Hansa +as almost entirel( !or#otten b( the end o! the
3@th $entr(- S$holar :eor# Friedri$h Sartoris pblished the !irst mono#raph re#ardin# the
$ommnit( in the earl( (ears o! the 34th $entr(-
P4&7,3)020(5; 324)()3& 4,:(&+
R,320-I07)2 4,:(&+
The Ptolemai$ d(nast( had initiated :re$o/;oman maritime trade $onta$t +ith India sin# the
;ed Sea ports- The ;oman historian Strabo mentions a &ast in$rease in trade !ollo+in# the ;oman
anne1ation o! E#(pt' indi$atin# that monsoon +as 0no+n and maniplated !or trade in his time- B(
the time o! A#sts p to 376 ships +ere settin# sail e&er( (ear !rom *(os Hormos to India' tradin#
in a di&erse &ariet( o! #oods- Arsinoe' Bereni$e Tro#lod(ti$a and *(os Hormos +ere the prin$ipal
;oman ports in&ol&ed in this maritime tradin# net+or0' +hile the Indian ports in$lded Barbari$m'
Bar(#a%a' *%iris and Ari0amed-
The Indians +ere present in Ale1andria and the Christian and Be+ settlers !rom ;ome
$ontined to li&e in India lon# a!ter the !all o! the ;oman empire' +hi$h reslted in ;ome=s loss o! the
;ed Sea ports' pre&iosl( sed to se$re trade +ith India b( the :re$o/;oman +orld sin$e the time
o! the Ptolemai$ d(nast(-
S/)'& R,:(&
This !i#re illstrates the path o! Das$o da :ama headin# !or the !irst time to India 9bla$0< as
+ell as the trips o! Pero da Co&ilha 9oran#e< and A!onso de Pai&a 9ble<- The path $ommon to both is
the #reen line-
As trade bet+een India and the :re$o/;oman +orld in$reased spi$es be$ame the main import
!rom India to the .estern +orld' b(passin# sil0 and other $ommodities- The Indian $ommer$ial
$onne$tion +ith Soth East Asia pro&ed &ital to the mer$hants o! Arabia and Persia drin# the Ith
$entr( and the @th $entr(-
The Abbasids sed Ale1andria' >amietta' Aden and Sira! as entr( ports to India and China-
*er$hants arri&in# !rom India in the port $it( o! Aden paid tribte in !orm o! ms0' $amphor' amber#ris
and sandal+ood to Ibn Qi(ad' the sltan o! Yemen- *ol$$an prod$ts shipped a$ross the ports o!
Arabia to the Near East passed thro#h the ports o! India and Sri Lan0a- Indian e1ports o! spi$es !ind
mention in the +or0s o! Ibn Jhrdadhbeh 9@86<' al/:ha!i"i 93386 A><' Isha0 bin Imaran 946I< and Al
Jal0ashandi 93Eth $entr(<- A!ter rea$hin# either the Indian or the Sri Lan0an ports' spi$es +ere
sometimes shipped to East A!ri$a' +here the( +ere sed !or man( prposes' in$ldin# brial rites-
On the orders o! *anel I o! Port#al' !or &essels nder the $ommand o! na&i#ator Das$o da :ama
ronded the Cape o! :ood Hope' $ontinin# to the eastern $oast o! A!ri$a to *alindi to sail a$ross the
Indian O$ean to Cali$t- The +ealth o! the Indies +as no+ open !or the Eropeans to e1plore) the
Port#ese Empire +as one o! the earl( Eropean empires to #ro+ !rom spi$e trade-
Modern routes
The modern times sa+ de&elopment o! ne+er means o! transport and o!ten $ontro&ersial !ree
trade a#reements' +hi$h altered the politi$al and lo#isti$al approa$h pre&alent drin# the *iddle
A#es- Ne+er means o! transport led to the establishment o! ne+ rotes' and $ontries opened p
borders to allo+ trade in mtall( a#reed #oods as per the pre&ailin# !ree trade a#reement- Some old
tradin# rote +ere reopened drin# the modern times' altho#h in di!!erent politi$al and lo#isti$al
s$enarios- The entr( o! harm!l !orei#n polltants b( the +a( o! trade rotes has been a $ase o!
alarm drin# the modern times- A $onser&ati&e estimate stresses that !tre dama#es !rom harm!l
animal and plant diseases ma( be as hi#h as 33E billion ?S dollars in the absen$e o! e!!e$ti&e
measres to pre&ent the introd$tion o! n+anted pests thro#h &arios trade rotes-
"21,0 82; 4,:(&+
Net+or0s' li0e the Santa Fe Trail and the Ore#on Trail' be$ame prominent in the ?nited States
+ith +a#on trains #ainin# poplarit( as a mode o! lon# distan$e o&erland transportation !or both
people and #oods- The Ore#on/Cali!ornia rotes +ere hi#hl( or#ani%ed +ith planned rende%&os
lo$ations and essential spplies- The settlers in the ?nited States sed these +a#on trains /
sometimes made p o! 366 o! more Conesto#a +a#ons / !or +est+ard emi#ration drin# the 3@th and
the 34th $entries- Amon# the $hallen#es !a$ed b( the +a#on rote operators +ere $rossin# ri&ers'
montains and hostile Nati&e Ameri$ans- Preparations +ere also made a$$ordin# to the +eather and
prote$tion o! trade and tra&elers +as ensred b( a !e+ #ards on horseba$0- .a#on !rei#htin# +as
also essential to Ameri$an #ro+th ntil it +as repla$ed b( the railroad and the tr$0-
R2)582; 4,:(&+
;ote o! the !irst Ameri$an trans$ontinental railroad !rom Sa$ramento' Cali!ornia' to Con$il
Bl!!s' Io+a-
The 3@EE ;ail+a( a$t o! En#land $ompelled at least one train to a station e&er( da( +ith the
third $lass !ares pri$ed at a penn( a mile- Trade bene!ited as the +or0ers and the lo+er $lasses had
the abilit( to tra&el to other to+ns !re"entl(- Sbrban $ommnities be#an to de&elop and to+ns
be#an to spread ot+ards- The British $onstr$ted a &ast rail+a( net+or0 in India' bt it +as
$onsidered to ser&e a strate#i$ prpose in addition to the $ommer$ial prpose- The e!!i$ient se o!
rail rotes helped in the ni!i$ation o! the ?nited States o! Ameri$a-
The modern times sa+ nations str##le !or the $ontrol o! rail rotes: The Trans/Siberian
;ail+a( +as intended to be sed b( the ;ssian #o&ernment !or $ontrol o! *an$hria and later
China) the :erman !or$es +anted to establish Berlin/Ba#hdad ;ail+a( in order to in!len$e the Near
East) and the Astrian #o&ernment planned a rote !rom Dienna to Saloni0a !or $ontrol o! the
Bal0ans-
A$$ordin# to the En$($lopedia Britanni$a 97667<:
;ailroads rea$hed their matrit( in the earl( 76th $entr(' as trains $arried the bl0 o! land
!rei#ht and passen#er tra!!i$ in the indstriali%ed $ontries o! the +orld- B( the mid/76th $entr('
ho+e&er' the( had lost their preeminent position- The pri&ate atomobile had repla$ed the railroad !or
short passen#er trips' +hile the airplane had srped it !or lon#/distan$e tra&el' espe$iall( in the
?nited States- ;ailroads remained e!!e$ti&e' ho+e&er' !or transportin# people in hi#h/&olme
sitations' s$h as $ommtin# bet+een the $entres o! lar#e $ities and their sbrbs' and medim/
distan$e tra&el o! less than abot 366 miles bet+een rban $entres- Altho#h railroads ha&e lost
m$h o! the #eneral/!rei#ht/$arr(in# bsiness to semi/trailer tr$0s' the( remain the best means o!
transportin# lar#e &olmes o! s$h bl0 $ommodities as $oal' #rain' $hemi$als' and ore o&er lon#
distan$es- The de&elopment o! $ontaineri%ation has made the railroads more e!!e$ti&e in handlin#
!inished mer$handise at relati&el( hi#h speeds- In addition' the introd$tion o! pi##(ba$0 !lat$ars' in
+hi$h tr$0 trailers are transported lon# distan$es on spe$iall(/desi#ned $ars' has allo+ed railroads
to re#ain some o! the bsiness lost to tr$0in#-
M,7&40 4,27 0&(8,46+
Hi#h/$apa$it( !ree+a( inter$han#e in Los An#eles' Cali!ornia' ?SA-
The ad&ent motor &ehi$les $reated a demand !or better se o! hi#h+a(s- ;oads e&ol&ed into
t+o +a( roads' e1press+a(s' !ree+a(s and toll +a(s drin# the modern times-
E1istin# roads +ere de&eloped and hi#h+a(s +ere desi#ned a$$ordin# to intended se-
Tr$0s $ame into +idespread se in the .estern .orld drin# .orld .ar I' and "i$0l( #ained
reptation as a means o! lon# distan$e transportation o! #oods- *odern hi#h+a(s' s$h as the Trans/
Canada Hi#h+a(' Hi#h+a( 3 9Astralia< and Pan/Ameri$an Hi#h+a( allo+ed transport o! #oods and
ser&i$es a$ross #reat distan$es- Atomobiles $ontine to pla( a $r$ial role in the e$onomies o! the
indstriali%ed $ontries' resltin# in rise o! bsinesses s$h as motor !rei#ht operation and tr$0
transportation-
The emission rate !or $ars sin# hi#h+a(s has been on a de$line bet+een 34I8 and 3448 de
to re#lations and the introd$tion o! nleaded petrol-
O@6P
This trend is espe$iall( notable sin$e there
has been a #ro+th in &ehi$les and &ehi$le miles tra&eled b( atomobiles sin# these hi#h+a(s-
M,7&40 324)()3& 4,:(&+
Canals in the ?S $ir$a 3@78-
A $onsistent shi!t !rom land based trade to sea based trade has been re$orded sin$e the last
three millennia-
O@3P
The strate#i$ ad&anta#es o! port $ities as tradin# $enters are man(: the( are both
less dependent on &ital $onne$tions and less &lnerable to blo$0a#es-
O@7P
O$eani$ ports $an help !or#e
tradin# relationships +ith other parts o! the +orld easil(-
O@7P
*odern maritime trade rotes / sometimes in the !orm o! arti!i$ial $anals li0e the Se% Canal /
had &isible impa$t on the e$onomi$ and politi$al standin# o! nations-
O@3P
The openin# o! the Se%
Canal altered British intera$tions +ith the $olonies o! the British Empire as the d(nami$s o!
transportation' trade and $ommni$ation had no+ $han#ed drasti$all(- Other +ater+a(s' li0e the
Panama Canal pla(ed an important role in the histories o! man( nations- Inland +ater transportation
remained si#ni!i$antl( important e&en as the ad&ent o! railroads and atomobiles reslted in a stead(
de$line o! $anals- Inland +ater transport is still sed !or the transportation o! bl0 $ommodities e-#-
#rains' $oal' and ore-
.ater+a( $ommer$e +as histori$all( important to Erope' parti$larl( to ;ssia- A$$ordin# to
the En$($lopedia Brittani$a 97667<: 2;ssia has been a si#ni!i$ant bene!i$iar(- Not onl( ha&e inland
+ater+a(s opened &ast areas o! its interior to de&elopment' bt *os$o+/lin0ed to the .hite' Balti$'
Bla$0' Caspian' and A%o& seas b( $anals and ri&ers/has be$ome a ma,or inland port-2
Oil spills are re$orded both in $ase o! maritime rotes and pipeline rotes to the main
re!ineries- Oil spills' amontin# to as m$h as I-85 billion liters o! oil enterin# the o$eans e&er( (ear'
o$$r de to dama#ed e"ipment or hman error-
F4&& T427& A4&2+
Histori$all(' #o&ernments !ollo+ed a poli$( o! prote$tion o! trade- International Free Trade
be$ame &isible in 3@56 +ith the An#lo/Fren$h $ommer$ial treat( and the sentiment !rther #ained
momentm drin# the post .orld .ar II era- 2A!ter .orld .ar II' stron# sentiment de&eloped
thro#hot the +orld a#ainst prote$tion and hi#h tari!!s and in !a&or o! !reer trade- The reslts +ere
ne+ or#ani%ations and a#reements on international trade s$h as the :eneral A#reement on Tari!!s
and Trade 934E@<' the Benel1 E$onomi$ ?nion 934E@<' the Eropean E$onomi$ Commnit(
9Common *ar0et' 348I<' the Eropean Free Trade Asso$iation 93484<' *er$osr 9the Sothern Cone
Common *ar0et' 3443<' and the .orld Trade Or#ani%ation 93448<- In 3443' the North Ameri$an Free
Trade A#reement 9NAFTA< +as appro&ed b( the #o&ernments o! Canada' *e1i$o' and the ?nited
States- In the earl( 3446s' the nations o! the Eropean ?nion 9the s$$essor or#ani%ation to the
Common *ar0et< ndertoo0 to remo&e all barriers to the !ree mo&ement o! trade and emplo(ment
a$ross their mtal borders-2
L&++,0 5
BAILMENT
Bailment is the pro$ess o! ma0in# deli&er( o! an asset or other t(pe o! propert(- :enerall(' this
t(pe o! transa$tion in&ol&es the o+ner o! the assets $hoosin# to temporaril( pla$e them in the $ontrol
o! another indi&idal- The person +ho deli&ers the asset is sall( 0no+n as the bailor' +hile the
re$ipient o! the assets is 0no+n as the bailee-
The pro$ess o! bailment is not a $asal sitation +here an indi&idal is as0ed to !n$tion as a
$areta0er !or a short period o! time- Part o! the pro$edre +ith bailment it that a le#al relationship is
established bet+een the o+ner and re$ipient- .hile the o+ner retains !ll ri#hts to the assets' the
ph(si$al possession o! the assets is #ranted to the re$ipient- Alon# +ith the ph(si$al possession o!
the propert( or assets' the bailee ma( also be #ranted $ertain po+ers o! administration that are
related to mana#ement o! the assets-
Alon# +ith de!inin# the ri#hts o! mana#ement drin# the time that the bailment is in e!!e$t' the
le#al do$mentation sall( also $ontains spe$i!i$ instr$tions on ho+ lon# the state o! bailment +ill
be in e!!e$t- T(pi$all(' most bailment a#reements also in$lde some sort o! ot $lases that are
related to both the bailor and the bailee- For e1ample' the bailor $old re&o0e the bailment i! there
+as e&iden$e that the bailee +as mismana#in# the asset- At the same time' the bailee +old be able
to terminate the arran#ement and retrn the propert( i! there +as a per$eption that the bailor is not
li&in# p to the terms o! the a#reement in some manner-
A le#al state o! bailment $an be a #reat option +hen the o+ner +ill be na&ailable to mana#e
or o&ersee an asset !or a short period o! time- A bailee ma( be desi#nated that $an mana#e rental
propert( in the absen$e o! the o+ner' or perhaps o&ersee a sto$0 port!olio !or a #i&en period o! time-
The idea behind the bailment is to ensre that the asset is in #ood hands' e&en i! the o+ner is not in a
position to mana#e the asset at the present time-
>eli&er( o! assets into the possession o! another person is nothin# to be ta0en li#htl(- A #reat
deal o! trst mst e1ist bet+een the o+ner and the bailee in order !or the bsiness relationship to
+or0- :reat $are shold be ta0en be!ore enterin# into a bailment a#reement' +hether as an o+ner
#rantin# temporar( $are o! assets to another indi&idal' or as the person +ho is bein# as0ed to ser&e
as a bailee-
I? ELEMENTS OF A BAILMENT
A- PE;SONAL P;OPE;TY
Onl( personal propert( 9tan#ible or intan#ible< is bailable-
B- >ELIDE;Y OF POSSESSION 9.ITHO?T TITLE<
A bailee mst 93< be #i&en e1$lsi&e possession and $ontrol o! the propert( and 97< 0no+in#l( a$$ept
it- >eli&er( ma( be a$tal or $onstr$ti&e-
C- A:;EE*ENT THAT THE P;OPE;TY BE ;ET?;NE> O; >ISPOSE> OF
The a#reement mst pro&ide !or the retrn o! the propert( to the bailor or a third person or !or
its disposal b( the bailee-
II- O;>INA;Y BAIL*ENTS
The three t(pes o! ordinar( bailments are: 93< Bailment !or the sole bene!it o! the bailor' 97< bailment
!or the sole bene!it o! the bailee' and 93< bailment !or their mtal bene!it-
III? RIGHTS AND DUTIES OF THE BAILEE
A- ;I:HTS OF THE BAILEE
1? R)1.( ,- P,++&++),0
Temporar( $ontrol and possession o! propert( that ltimatel( is to be retrned to the o+ner- >rin# a
bailment' a bailee $an re$o&er dama#es !rom an( third persons !or dama#e or loss to the propert(-
2? R)1.( (, U+& B2)5&7 P4,/&4(;
The e1tent to +hi$h bailees $an se the propert( depends on the $ontra$t- I! no pro&ision is made'
the e1tent depends on ho+ ne$essar( it is !or the #oods to be at the baileeFs disposal-
B? R)1.( ,- C,3/&0+2(),0
A bailee has a ri#ht to be $ompensated as a#reed and to be reimbrsed !or $osts and ser&i$es in the
0eepin# o! the propert(- To en!or$e this ri#ht' a bailee $an pla$e a lien on the propert( 9see Chapter
33<-
4? R)1.( (, L)3)( L)2$)5)(;
Bailees $an limit their liabilit( as lon# asV
a- Limitations Are Called to the Attention o! the Bailor
Fine print on the ba$0 o! a ti$0et stb is not s!!i$ient-
b- Limitations Are Not A#ainst Pbli$ Poli$(
E1$lpator( $lases are $are!ll( s$rtini%ed b( the $orts and' in bailments' o!ten held to be ille#al- I!
a bailee attempts to e1$lde liabilit( !or his or her o+n ne#li#en$e' the $lase is nen!or$eable-
B? DUTIES OF THE BAILEE
3- >t( o! Care
Bailees mst e1er$ise $are o&er the propert( in their possession- The appropriate standard isV
a- Sli#ht Care
In bailments !or the sole bene!it o! the bailor' the bailee is liable onl( !or #ross ne#li#en$e-
b- :reat Care
In bailments !or the sole bene!it o! the bailee' the bailee is liable !or e&en sli#ht ne#li#en$e-
$- Ordinar( Care
In bailments !or the mtal bene!it o! both parties' the bailee is liable !or a !ailre to se reasonable
$are-
7- >t( to ;etrn Bailed Propert(
.hen a bailment ends' the bailee mst relin"ish the propert(- Failre to do so is a brea$h o!
$ontra$t 9nless the propert( is destro(ed' lost' or stolen thro#h no !alt o! the bailee' or #i&en to a
third part( +ith a sperior $laim< and $old reslt in liabilit( !or $on&ersion-
3- >eli&er( o! :oods to the .ron# Person
A bailee ma( be liable i! the propert( is #i&en to the +ron# person-
E- Presmption o! Ne#li#en$e
.hen the bailee has the propert( and dama#e o$$rs that normall( reslts onl( !rom someoneFs
ne#li#en$e' the baileeFs ne#li#en$e is presmed- The bailee mst pro&e that he or she +as not at
!alt-
I!? RIGHTS AND DUTIES OF THE BAILOR
A? RIGHTS OF THE BAILOR
Complementar( to the baileeFs dtiesV
3- The propert( +ill be prote$ted +ith reasonable $are +hile in the baileeFs possession-
7- The bailee +ill se the propert( as a#reed 9or not at all<-
3- The propert( +ill be relin"ished a$$ordin# to the bailorFs dire$tions-
E- The bailee +ill not alter the #oods e1$ept as a#reed-
8- The bailor +ill not be bond b( an( limitations on the baileeFs liabilit( nless these limitations are
0no+n and are en!or$eable b( la+-
5- ;epairs or ser&i$e +ill be done +ithot de!e$ti&e +or0manship-
B? DUTIES OF THE BAILOR
A bailor has a dt( to pro&ide the bailee +ith #oods that are !ree !rom hidden de!e$ts that $old in,re
the bailee-
a- In a mtal/bene!it bailment' bailor mst noti!( bailee o! all 0no+n de!e$ts and an( hidden de!e$ts
that the bailor 0ne+ o! or $old ha&e dis$o&ered +ith reasonable dili#en$e and proper inspe$tion-
b- In a bailment !or the sole bene!it o! the bailee' the bailor mst noti!( the bailee o! an( 0no+n
de!e$ts-
7- To .hom >oes Liabilit( E1tendW
To an(one +ho mi#ht be e1pe$ted to $ome in $onta$t +ith the #oods- A bailor ma( also be liable
nder ?CC Arti$le 7AFs implied +arranties
!? TERMINATION OF BAILMENTS
Bailments !or a spe$i!i$ term end +hen the term ends- I! no term is spe$i!ied' a bailment $an
be terminated b( mtal a#reement o! the parties' a demand b( either part(' $ompletion o! the
prpose o! the bailment' an a$t b( the bailee that is in$onsistent +ith the terms o! the bailment' or the
operation o! la+-
!I? SPECIAL FEATURES OF SPECIFIC BAILMENTS
A- DOCUMENTS OF TITLE AND ARTICLE 7
3- .hat a >o$ment o! Title Is
A re$eipt !or #oods in the $har#e o! a bailee/$arrier or a bailee/+arehoser and a $ontra$t !or the
shipment or stora#e o! identi!ied #oods- In$ldes bills o! ladin#' +arehose re$eipts' and deli&er(
orders-
7- Ne#otiabilit( o! a >o$ment o! Title
A do$ment o! title is ne#otiable i! it spe$i!ies that #oods are to be deli&ered to bearer or to the order
o! a named person- I! soV
a- The possessor o! the do$ment is entitled to re$ei&e' hold' and dispose o! the do$ment and the
#oods it $o&ers-
b- A #ood !aith pr$haser o! the do$ment ma( a$"ire #reater ri#hts to the do$ment and the #oods
it $o&ers than the trans!eror had or had the athorit( to $on&e( 9he or she ma( ta0e !ree o! the $laims
and de!enses o! prior parties<-
3- >e Ne#otiation
>e ne#otiation means that the b(er o! a do$ment o! title ta0es it 93< in #ood !aith' !or &ale' and
+ithot noti$e o! a de!ense a#ainst or a $laim to it' and 97< in the re#lar $orse o! bsiness or
!inan$in# 9not in settlement or pa(ment o! a mone( obli#ation<-
E- :oods >eli&ered A$$ordin# to a Thie!Fs Instr$tions
A bailee +ho re$ei&es #oods !rom a thie! and a$ts a$$ordin# to that indi&idalFs instr$tions is not
liable to the #oodsF tre o+ner 9i! he or she a$ted in #ood !aith and obser&ed reasonable $ommer$ial
standards<-
B? COMMON CARRIERS
Common $arriers are pbli$l( li$ensed to pro&ide transportation ser&i$es to the #eneral pbli$-
3- Stri$t Liabilit(
Common $arriers are absoltel( liable' re#ardless o! ne#li#en$e' !or all loss or dama#e to #oods in
their possession' e1$ept i! it is $ased b( an a$t o! :od' an a$t o! a pbli$ enem(' an order o! a pbli$
athorit(' an a$t o! the shipper' or the natre o! the #oods-
7- Limits to Liabilit(
Common $arriers $an limit their liabilit( to an amont stated on the shipment $ontra$t- The shipper
bears an( loss o$$rrin# thro#h its o+n !alt or improper $ratin# or pa$0a#in# pro$edres-
3- Conne$tin# Carriers
+hen $onne$tin# $arriers are in&ol&ed nder a thro#h bill o! ladin#' the shipper $an re$o&er !rom the
ori#inal $arrier or an( $onne$tin# $arrier- Normall(' the last $arrier is presmed to ha&e re$ei&ed the
#oods in #ood $ondition-
C? "AREHOUSE COMPANIES
.arehose $ompanies are liable !or loss or dama#e to propert( resltin# !rom ne#li#en$e A
+arehose $ompan( $an limit the dollar amont o! liabilit(' bt the bailor mst be #i&en the option o!
pa(in# an in$reased stora#e rate !or an in$rease in the liabilit( limit-
D? INNAEEPERS
Those +ho pro&ide lod#in# to the pbli$ !or $ompensation as a re#lar bsiness are stri$tl(
liable !or in,ries to #ests 9not permanent residents<-
L&++,0 6
SPECIAL CONTRACTS - INDEMNITY AND GUARANTEE
.e enter into $ontra$ts so man( times in a da( that X$ontra$tF has be$ome an indispensable
part o! or li!e- .hen (o pr$hase mil0 or ne+spaper in the mornin# or #o to mo&ie in the e&enin#'
(o are enterin# into a $ontra$t- Indian Contra$t A$t reall( $odi!ies the +a( +e enter into a $ontra$t'
e1e$te a $ontra$t' and implement pro&isions o! a $ontra$t and e!!e$ts o! brea$h o! a $ontra$t-
Basi$all(' a person is !ree to $ontra$t on an( terms he $hooses- The Contra$t A$t $onsists o! limitin#
!a$tors sb,e$t to +hi$h $ontra$t ma( be entered into' e1e$ted and brea$h en!or$ed- It onl( pro&ides
a !rame+or0 o! rles and re#lations +hi$h #o&ern !ormation and per!orman$e o! $ontra$t- The ri#hts
and dties o! parties and terms o! a#reement are de$ided b( the $ontra$tin# parties themsel&es- The
$ort o! la+ a$ts to en!or$e a#reement' in $ase o! non/per!orman$e-
Se$tion 3 o! Contra$t A$t pro&ides that an( sa#e or $stom or trade or an( in$ident o!
$ontra$t is not a!!e$ted as lon# as it is not in$onsistent +ith pro&isions o! the A$t- In other +ords'
pro&ision o! Contra$t A$t +ill pre&ail o&er an( sa#e or $stom or trade- Ho+e&er' an( sa#e' $stom
or trade +ill be &alid as lon# as it is not in$onsistent +ith pro&isions o! Contra$t A$t- The A$t e1tends
to the +hole o! India e1$ept the State o! Bamm and Jashmir) and $ame into e!!e$t on 3/4/3@I7-
It mst be noted that $ontra$t need not be in +ritin#' nless there is spe$i!i$ pro&ision in la+
that the $ontra$t shold be in +ritin#- Oe-#- Y $ontra$t !or sale o! immo&able propert( mst be in
+ritin#' stamped and re#istered- Y Contra$ts +hi$h need re#istration shold be in +ritin# Y Bill o!
E1$han#e or Promissor( Note mst be in +ritin#- Y Trst shold be $reated in +ritin# Y Promise to pa(
a time barred loan shold be in +ritin#' as per Limitation A$t Y Contra$t made +ithot $onsideration
on a$$ont o! natral lo&e and a!!e$tion shold be in +ritin#P- A &erbal $ontra$t is e"all( en!or$eable'
i! it $an be pro&ed-- A $ontra$t $an be en!or$ed or $ompensationAdama#es !or brea$h o! $ontra$t $an
be obtained thro#h Ci&il Cort
E++&0()25 I014&7)&0(+ ,- 2 ',0(42'(
As per Contra$t A$t' an a#reement en!or$eable b( la+ is a $ontra$t- OSe$tion 79h<P- Hen$e' +e
ha&e to nderstand !irst +hat Xa#reementF is-
E&er( promise and e&er( set o! promises' !ormin# the $onsideration !or ea$h other' is an
a#reement- Ose$tion 79e<P- / / A person ma0es a proposal 9o!!er<- .hen it is a$$epted b( other' it
be$omes a promise- Ho+e&er' promise $annot be one sided- Onl( a mtal promise !ormin#
$onsideration !or ea$h other is Xa#reementF- / / For e1ample' A a#rees to pa( ;s 366 to B and B
a#rees to #i&e him a boo0 +hi$h is pri$ed at ;s 366- This is set o! promises +hi$h !orm $onsideration
!or ea$h other- Ho+e&er' i! A a#rees to pa( ;s 366 to B' bt B does not promise an(thin#' it is not Xset
o! promises !ormin# $onsideration !or ea$h otherF and hen$e not an a#reement-
It shold be noted that the term Xa#reementF as de!ined in Contra$t A$t re"ires mtal
$onsideration- / / Ths' i! A in&ites B to dinner and B a#rees to $ome' it is not an Xa#reementF as
de!ined in Contra$t A$t-
MEANING OF DPROPOSALE
.hen one person si#ni!ies to another his +illin#ness to do or to abstain !rom doin# an(thin#'
+ith a &ie+ to obtainin# the assent o! that other to s$h a$t or abstinen$e' he is said to ma0e a
proposal- Ose$tion 79a<P-/ / Ths' a XproposalF $an be to do a positi&e a$t or abstinen$e !rom a$t 9i-e-
ne#ati&e a$t<- OEn#lish A$t ses the +ord Xo!!erF' +hile Indian Contra$t A$t ses the +ord XproposalF-
:enerall(' both +ords are sed inter/$han#eabl(- This is not te$hni$all( $orre$t' as the +ord Xo!!erF is
not sed in Contra$t A$tP-
MEANING OF DPROMISEE
.hen the person to +hom the proposal is made si#ni!ies his assent thereto' the proposal is
said to be a$$epted- A proposal' +hen a$$epted' be$omes a promise- Ose$tion 79b<P- / / Ths' +hen a
proposal 9o!!er< is a$$epted' it be$omes a XpromiseF- As is $lear !rom the de!inition' onl( person to
+hom proposal is made $an si#ni!( his assent- Other person $annot a$$ept a proposal-
PROMISOR AND PROMISEE
The person ma0in# the proposal is $alled the KpromisorL' and the person a$$eptin# the
proposal is $alled the KpromiseeL- OSe$tion 79$<P-
RECIPROCAL PROMISES
Promises +hi$h !orm the $onsideration or part o! the $onsideration !or ea$h other are $alled
re$ipro$al promises- Ose$tion 79!<P-
C,0+)7&42(),0 -,4 /4,3)+&
The de!inition o! Xa#reementF itsel! states that the mtal promises shold !orm $onsideration
o! ea$h other- Ths' X$onsiderationF is essential !or an a#reement- A promise +ithot $onsideration is
not Xa#reementF and hen$e natrall(' it is not a X$ontra$tF-
DEFINITION OF DCONSIDERATIONE
.hen' at the desire o! the promisor' the promisee or an( other person has done or abstained
!rom doin#' or does or abstains !rom doin#' or promises to do or to abstain !rom doin#' somethin#'
s$h a$t or abstinen$e or promise is $alled a $onsideration !or the promise- Ose$tion 79d<P-
S(&/+ )0*,5*&7 )0 ',0(42'(
The steps in&ol&ed in the $ontra$t are N Y proposal and its $ommni$ation Y a$$eptan$e o!
proposal and its $ommni$ation Y A#reement b( mtal promises Y Contra$t Y Per!orman$e o!
Contra$t- / / All a#reements are not $ontra$t- Onl( those a#reements +hi$h are en!or$eable b( la+
are X$ontra$tsF- Follo+in# are essential re"irements o! a &alid $ontra$t-
O!!er and its a$$eptan$e
Free $onsent o! both parties
*tal and la+!l $onsideration !or a#reement
It shold be en!or$eable b( la+- Hen$e' intention shold be to $reate le#al relationship-
A#reements o! so$ial or domesti$ natre are not $ontra$ts
Parties shold be $ompetent to $ontra$t
Ob,e$t shold be la+!l
Certaint( and possibilit( o! per!orman$e
Contra$t shold not ha&e been de$lared as &oid nder Contra$t A$t or an( other la+
C,33:0)'2(),0 2''&/(20'& 207 4&*,'2(),0 ,- /4,/,+25+
Commni$ation o! proposalA re&o$ationAa$$eptan$e are &ital to de$ide &alidit( o! a $ontra$t- A
X$ommni$ationF is $omplete onl( +hen other part( re$ei&es it-
ACCEPTANCE MUST BE ABSOLUTE
In order to $on&ert a proposal into a promise' the a$$eptan$e mst / 93< be absolte and
n"ali!ied) 97< be e1pressed in some sal and reasonable manner' nless the proposal pres$ribed
the manner in +hi$h it is to be a$$epted- I! the proposal pres$ribes a manner in +hi$h it is to be
a$$epted' and the a$$eptan$e is not made in s$h a manner' the proposer ma(' +ithin a reasonable
time a!ter the a$$eptan$e is $ommni$ated to him' insist that his proposal shall be a$$epted in the
pres$ribed manner' and not other+ise) bt i! he !ails to do so' he a$$epts the a$$eptan$e- OSe$tion IP-
A$$eptan$e o! o!!er is $omplete onl( +hen it is absolte and n$onditional- Conditional
a$$eptan$e or "ali!ied a$$eptan$e is no a$$eptan$e-
PROMISES EFPRESS OR IMPLIED
Inso!ar as the proposal or a$$eptan$e o! an( promise is made in +ords' the promise is said to
be e1press- Inso!ar as s$h proposal or a$$eptan$e is made other+ise than in +ords' the promise is
said to be implied- OSe$tion 4P- / / For e1ample' i! a person enters a bs' there is implied promise that
he +ill pa( the bs !air-
!OIDABLE CONTRACT
An a#reement +hi$h is en!or$eable b( la+ at the option o! one or more o! the parties thereto'
bt not at the option o! the other or others' is a &oidable $ontra$t- OSe$tion 79i<P- / / 9a< +hen $onsent is
obtained b( $oer$ion' nde in!len$e' misrepresentation or !rad is &oidable at the option o!
a##rie&ed part( i-e- part( +hose $onsent +as obtained b( $oer$ionA!rad et$- Ho+e&er' other part(
$annot a&oid the $ontra$t- 9b< .hen a $ontra$t $ontains re$ipro$al promises and one part( to $ontra$t
pre&ents the other !rom per!ormin# his promise' the $ontra$t be$omes &oidable at the option o! the
part( to pre&ent- 9Se$tion 83<- Ob&ios prin$iple is that a person $annot ta0e ad&anta#e o! his o+n
+ron# 9$< .hen time is essen$e o! $ontra$t and part( !ails to per!orm in time' it is &oidable at the
option o! other part( 9se$tion 88<- A person +ho himsel! dela(ed the $ontra$t $annot a&oid the
$ontra$t on a$$ont o! 9his o+n< dela(-
!OID CONTRACT
A $ontra$t +hi$h $eases to be en!or$eable b( la+ be$omes &oid +hen it $eases to be
en!or$eable- OSe$tion 79,<P- / / Ths' initiall( a $ontra$t $annot be &oid' i-e- a $ontra$t $annot be
&oidable into- The simple reason is that in s$h a $ase' it is not a $ontra$t at all to be#in +ith- Hen$e'
onl( a &alid $ontra$t $an be$ome &oid $ontra$t de to some sbse"ent e&ents- e-#- the person dies
or propert( is destro(ed or :o&ernment imposes a ban et$- / / A &oid a#reement is &oidable into- It
ne&er be$omes a $ontra$t- It is nllit( and $annot $reate an( le#al ri#hts-
".2( 214&&3&0(+ 24& ',0(42'(+
All a#reements are $ontra$ts i! the( are made b( the !ree $onsent o! parties $ompetent to
$ontra$t' !or a la+!l $onsideration and +ith a la+!l ob,e$t' and are not hereb( e1pressl( de$lared to
be &oid- Nothin# herein $ontained shall a!!e$t an( la+ in !or$e in India and not hereb( e1pressl(
repealed' b( +hi$h an( $ontra$t is re"ired to be made in +ritin# or in the presen$e o! +itnesses' or
an( la+ relatin# to the re#istration o! do$ments- OSe$tion 36P-
"., 24& ',3/&(&0( (, ',0(42'(
E&er( person is $ompetent to $ontra$t +ho is o! the a#e o! ma,orit( a$$ordin# to the la+ to
+hi$h he is sb,e$t' and +ho is o! sond mind' and is not dis"ali!ied !rom $ontra$tin# b( an( la+ to
+hi$h he is sb,e$t- OSe$tion 33P-
F4&& ',0+&0(
Consent o! both parties mst be !ree- Consent obtained thro#h $oer$ion' nde in!len$e'
!rad' misrepresentation or mista0e is not a X!ree $onsentF- / - T+o or more persons are said to
$onsent +hen the( a#ree pon the same thin# in the same sense- OSe$tion 33P- / / Consent is said to
be !ree +hen it is not $ased b( / 93< $oer$ion' as de!ined in se$tion 38' or 97< nde in!len$e' as
de!ined in se$tion 35' or 93< !rad' as de!ined in se$tion 3I' or 9E< misrepresentation' as de!ined in
se$tion 3@' or 98< mista0e' sb,e$t to the pro&isions o! se$tions 76' 73 and 77- / / Consent is said to
be so $ased +hen it +old not ha&e been #i&en bt !or the e1isten$e o! s$h $oer$ion' nde
in!len$e' !rad' misrepresentation or mista0e- OSe$tion 3EP-
!,)7 214&&3&0(+
An a#reement not en!or$eable b( la+ is said to be &oid- Ose$tion 79#<P- / / Note that it is not
X&oid $ontra$tF' as an a#reement +hi$h is not en!or$eable b( la+ does not be$ome X$ontra$tF at all-
Follo+in# are &oid a#reements / Y Both parties nder mista0e o! !a$t 9se$tion 76< Y ?nla+!l ob,e$t or
$onsideration 9se$tion 7E< Y A#reement +ithot $onsideration 9se$tion 78< Y A#reement in restraint o!
marria#e 9se$tion 75< Y A#reement in restraint o! trade 9se$tion 7I< Y A#reement in restraint o! le#al
pro$eedin#s 9se$tion 7@< Y ?n$ertain a#reement 9se$tion 74< Y .a#erin# a#reement 9se$tion 74< Y
A#reement to do an impossible A$t 9se$tion 85<- / / These are dis$ssed belo+-
O$5)12(),0 ,- /&4+,0 8., .2+ 4&'&)*&7 27*20(21& :07&4 *,)7 214&&3&0( ,4 ',0(42'( (.2(
$&',3&+ *,)7
.hen an a#reement is dis$o&ered to be &oid' or +hen a $ontra$t be$omes &oid' an( person
+ho has re$ei&ed an( ad&anta#e nder s$h a#reement or $ontra$t is bond to restore it' or to ma0e
$ompensation !or it' to the person !rom +hom he re$ei&ed it-
C,0()01&0( ',0(42'(
A K$ontin#ent $ontra$tL is a $ontra$t to do or not to do somethin#' i! some e&ent' $ollateral to
s$h $ontra$t' does or does not happen- Illstration / A $ontra$ts to pa( B ;s- 36'666 i! BFs hose is
brnt- This is a $ontin#ent $ontra$t- OSe$tion 33P-
C,0(42'(+ 8.)'. 3:+( $& /&4-,43&7
The parties to a $ontra$t mst either per!orm' or o!!er to per!orm' their respe$ti&e promises'
nless s$h per!orman$e is dispensed +ith or e1$sed nder the pro&isions o! this A$t' or o! an(
other la+- Promises bind the representati&es o! the promisors in $ase o! the death o! s$h promisors
be!ore per!orman$e' nless a $ontrar( intention appears !rom the $ontra$t- / / Illstrations / 9a< A
promises to deli&er #oods to B on a $ertain da( on pa(ment o! ;s- 3'666- A dies be!ore that da(- AFs
representati&es are bond to deli&er the #oods to B' and B is bond to pa( ;s- 3'666 to AFs
representati&es- 9b< A promises to paint a pi$tre !or B b( a $ertain da(' at a $ertain pri$e- A dies
be!ore the da(- The $ontra$t $annot be en!or$ed either b( AFs representati&e or b( B Ose$tion 3IP- The
per!orman$e $an be Xa$tal per!orman$eF or Xattempted per!orman$eF' i-e- Xo!!er to per!ormF-
P&4-,4320'& ,- 4&')/4,'25 /4,3)+&+
Promises +hi$h !orm the $onsideration or part o! the $onsideration !or ea$h other are $alled
re$ipro$al promises- OSe$tion 79!<P- A mtal promise $an be o! !ollo+in# t(pes N 9a< *tal and
independent N .here ea$h part( mst per!orm his promise independentl( and irrespe$ti&e o! +hether
the other part( has per!ormed or +illin# to per!orm e-#- Seller a#rees to deli&er on 8
th
and B(er
a#rees to pa( on 38
th
- 9b< Conditional and dependent N Per!orman$e o! promise b( one part(
depends on prior per!orman$e o! promise b( other part(- e-#- B(er a#rees to pa( !or #oods 38 da(s
a!ter deli&er(- Hen$e' nless seller deli&ers #oods' b(erFs liabilit( does not arise- 9$< *tal and
$on$rrent N .here the promises o! both parties mst be per!ormed simltaneosl(- E-#- b(er
a#rees to pa( immediatel( on deli&er( o! #oods i-e- $ash pa(ment-
C,0(42'(+ 8.)'. 0&&7 0,( $& /&4-,43&7
Normall(' a $ontra$t is e1pe$ted to be per!ormed- The per!orman$e m( be a$tal or b( +a( o!
tender' i-e- attempted per!orman$e- Ho+e&er' in $ertain sitations as stated belo+' the $ontra$t need
not be per!ormed- Y No&ation' res$ission and alteration o! $ontra$t Y Promisee ma( dispense +ith or
remit per!orman$e o! promise Y E!!e$t o! ne#le$t o! promisee to a!!ord promisor reasonable !a$ilities
!or per!orman$e Y *er#er o! sperior ri#hts +ith in!erior ri#ht nder $ontra$t? This is sall( termed as
Xdis$har#e o! $ontra$tF-
G:2+) C,0(42'(+
XCasiF means XalmostF or Xapparentl( bt not reall(F or Xas i! it +ereF- This term is sed +hen
one sb,e$t resembles another in $ertain $hara$teristi$s bt there are intrinsi$ di!!eren$es bet+een
the t+o- XCasi $ontra$tF is not a X$ontra$tF- It is an obli#ation +hi$h la+ $reated in absen$e o! an(
a#reement- It is based on e"it(- There are $ertain relations resemblin# those $reated b( $ontra$t-
These are termed as X"asi $ontra$tsF- These are N 9a< Sppl( o! ne$essaries 9se$tion 5@< 9b<
Pa(ment o! la+!l des b( interested person 9se$tion 54< 9$< Person en,o(in# bene!it o! a #ratitos
a$t 9se$tion I6< 9d< Finder o! #oods 9se$tion I3< 9d< :oods or an(thin# deli&ered b( mista0e or
$oer$ion 9se$tion I7<-
C,0+&H:&0'&+ ,- B4&2'. ,- C,0(42'(
Compensation is pa(able !or brea$h o! $ontra$t- Penalt( is also pa(able i! pro&ided in $ontra$t-
Brea$h o! $ontra$t ma( be a$tal or anti$ipator(-
Smmar( o! prin$iples o! $ompensation and dama#es / Follo+in# points are important / Y
Compensation !or loss or dama#e is pa(able- Sin$e the +ord sed is X$ompensationF' pniti&e
dama#es $annot be a+arded- Y These shold be in sal $orse or 0no+n to parties i-e- both parties
mst be a+are Y No $ompensation !or remote and indire$t loss or dama#e Y Same prin$iple applies to
"asi $ontra$t also-
L&++,0 7
GENERAL DAMAGES
:eneral dama#es are those +hi$h reslt !rom Xdire$t and pro1imateF $onse"en$es !rom
brea$h o! $ontra$t- Normall(' +hat $an be a+arded is $ompensation !or loss or dama#e +hi$h $an be
dire$tl( or pro1imatel( attribted to the brea$h o! $ontra$t- One +a( o! assessin# dama#es is the
di!!eren$e bet+een the $ontra$t pri$e and the mar0et pri$e on date o! brea$h o! $ontra$t' pls
reasonable e1penses in$rred b( him on a$$ont o! the brea$h pls $ost o! sit in $ort o! la+-
CONSEGUENTIAL LOSS OR SPECIAL DAMAGE
Spe$ial dama#es or $onse"ential dama#es arise de to e1isten$e o! spe$ial $ir$mstan$es-
S$h dama#es $an be a+arded onl( in $ases +here the spe$ial $ir$mstan$es +ere !oreseeable b(
the part( $ommittin# the brea$h or +ere spe$i!i$all( 0no+n to the part(- Conse"ential losses li0e
loss o! pro!it de to brea$h' +hi$h ma( o$$r indire$tl( de to brea$h $annot be normall( a+arded
nless there are spe$ial $ir$mstan$es +hi$h parties +ere a+are- Loss o! pro!it $an be a+arded onl(
in $ases +here seller $old ha&e !oreseen those losses and arose dire$tl( as reslt o! brea$h-
PROMISEE SHOULD TAAE STEPS TO MITIGATE THE LOSS OR DAMAGE
E1planation to se$tion I3 spe$i!i$all( pro&ides that in estimatin# loss or dama#e' the means
a&ailable !or remed(in# the in$on&enien$e $ased b( brea$h o! $ontra$t shall be ta0en into a$$ont-
Ths' promisee shold ta0e all reasonable steps to miti#ate the losses e-#- i! promisor does not
sppl( #oods' he shold ma0e e!!orts to pro$re !rom alternate sor$es ma( be e&en at hi#her pri$e'
to red$e his losses arisin# ot o! brea$h o! $ontra$t-
!INDICTI!E OR EFEMPLARY DAMAGES
Dindi$ti&e or e1emplar( dama#es $annot be a+arded nder Contra$t A$t- Ho+e&er' these ma(
be a+arded b( Cort nder tort nder spe$ial $ir$mstan$es e-#- Y >ishonor o! $he"e b( Ban0
+hen there +as balan$e in a$$ont' as it $ases loss o! reptation o! $redit +orthiness o! person
issin# $he"e Y Brea$h o! $ontra$t to marr(' as it hrts both !eelin#s and reptation-
G:20(:3 M&4:)(
XCantm meritF means Xas m$h as earnedF- A $ontra$t ma( $ome to end b( Y brea$h o!
$ontra$t Y $ontra$t be$omin# &oid or Y Doidable $ontra$t a&oided b( part(- In s$h $ase' i! a part( has
e1e$ted part o! $ontra$t' he is entitled to #et a proportionate amont i-e- Xas m$h as earned b( himF-
This is not b( +a( o! Xdama#esF or X$ompensation !or lossF- / / The prin$iple is that e&en +hen $ontra$t
$omes to a prematre end' the part( shold #et amont proportional to the +or0 doneAser&i$es
pro&idedA#oods spplied b( one part(- One part( shold not #et enri$hed at the $ost o! other-
C,0(42'( ,- )07&30)(;
A $ontra$t b( +hi$h one part( promises to sa&e the other !rom loss $ased to him b( the
$ond$t o! the promisor himsel!' or b( the $ond$t o! an( other person' is $alled a X$ontra$t o! indem/
nit(F- / / Illstration / A $ontra$ts to indemni!( B a#ainst the $onse"en$es o! an( pro$eedin#s +hi$h
C ma( ta0e a#ainst B in respe$t o! a $ertain sm o! 766 rpees- This is a $ontra$t o! indemnit(-
OSe$tion 37EP-
C,0(42'( ,- 1:2420(&&
A K$ontra$t o! #aranteeL is a $ontra$t to per!orm the promise' or dis$har#e the liabilit(' o! a
third person in $ase o! his de!alt- The person +ho #i&es the #arantee is $alled the Ksret(L) the
person in respe$t o! +hose de!alt the #arantee is #i&en is $alled the Kprin$ipal debtorL' and the
person to +hom the #arantee is #i&en is $alled the K$reditorL- A #arantee ma( be either oral or
+ritten- Ose$tion 375P- / / OPerson #i&in# #arantee is also $alled as X#arantorF- Ho+e&er' Contra$t A$t
ses the +ord Xsret(F +hi$h is same as X#arantorFP- / / Three parties are in&ol&ed in $ontra$t o!
#arantee- Contra$t bet+een an( t+o o! them is not a X$ontra$t o! #aranteeF- It ma( be $ontra$t o!
indemnit(- Primar( liabilit( is o! the prin$ipal debtor- Liabilit( o! sret( is se$ondar( and arises +hen
Prin$ipal >ebtor !ails to !l!ill his $ommitments- Ho+e&er' this is so +hen sret( #i&es #arantee at
the re"est o! prin$ipal debtor- I! the sret( #i&es #arantee on his o+n' then it +ill be $ontra$t o!
indemnit(- In s$h $ase' sret( has all primar( liabilities-
CONSIDERATION FOR GUARANTEE
An(thin# done' or an( promise made' !or the bene!it o! the prin$ipal debtor' ma( be s!!i$ient
$onsideration to the sret( !or #i&in# the #arantee- / / Illstrations / 9a< B re"ests A to sell and
deli&er to him #oods on $redit- A a#rees to do so' pro&ided C +ill #arantee the pa(ment o! the pri$e
o! the #oods- C promises to #arantee the pa(ment in $onsideration o! AFs promise to deli&er the
#oods- This is s!!i$ient $onsideration !or CFs promise- 9b< A selms and deli&ers #oods to B- C
a!ter+ards re"ests A to #orbear to se B !or the debt !or a (ear' and promises that i! 1e does so'ZC
+ill pa( !or them in de!alt o! pa(ment b( B- A a#rees to !orbear as re"ested- This is a s!!i$ient
$onsideration !or CFs promise- 9$< A sells and deli&ers #oods to B- C a!ter+ards' +ithot
$onsideration' a#rees to pa( !or them in de!alt o! B- The a#reement is &oid- OSe$tion 37IP-
B2)53&0(
Bailment is another t(pe o! spe$ial $ontra$t- Sin$e it is a X$ontra$tF' natrall( all basi$
re"irements o! $ontra$t are appli$able- / / Bailment means a$t o! deli&erin# #oods !or a spe$i!ied
prpose on trst- The #oods are to be retrned a!ter the prpose is o&er- In bailment' possession o!
#oods is trans!erred' bt propert( i-e- o+nership is not trans!erred- A KbailmentL is the deli&er( o!
#oods b( one person to another !or some prpose' pon a $ontra$t that the( shall' +hen the prpose
is a$$omplished' be retrned or other+ise disposed o! a$$ordin# to the dire$tions o! the person
deli&erin# them- The person deli&erin# the #oods is $alled the KbailorL- The person to +hom the( are
deli&ered is $alled the KbaileeL- / / E1planation: I! a person alread( in possession o! the #oods o!
another' $ontra$ts to hold them as a bailee' he thereb( be$omes the bailee' and o+ner be$omes the
bailor' o! s$h #oods' altho#h the( ma( not ha&e been deli&ered b( +a( o! bailment- OSe$tion 3E@P-
OThs' initial possession o! #oods ma( be !or other prpose' and sbse"entl(' it ma( be $on&erted
into a $ontra$t o! bailment' e-#- seller o! #oods +ill be$ome bailee i! #oods $ontine in his possession
a!ter sale is $ompleteP-
Bailment $an be onl( o! X#oodsF- As per se$tion 79I< o! Sale o! :oods A$t' X#oodsF means
e&er( 0ind o! mo&able propert( other than mone( and a$tionable $laim- / / Ths' 0eepin# mone( in
ban0 a$$ont is not XbailmentF- As0in# a person to loo0 a!ter (or hose or !arm drin# (or absen$e
is not XbailmentF' as hose or !arm is not a mo&able propert(-
B2)53&0( ,- /5&71&+
Pled#e is spe$ial 0ind o! bailment' +here deli&er( o! #oods is !or prpose o! se$rit( !or
pa(ment o! a debt or per!orman$e o! a promise- Pled#e is bailment !or se$rit(- Common e1ample is
0eepin# #old +ith ban0Amone( lender to obtain loan- Sin$e pled#e is bailment' all pro&isions
appli$able to bailment appl( to pled#e also- In addition' some spe$i!i$ pro&isions appl( to pled#e- The
bailment o! #oods as se$rit( !or pa(ment o! a debt or per!orman$e o! a promise is $alled Kpled#eL-
The bailor is in this $ase $alled the Kpa+norL- The bailee is $alled the Kpa+neeL- OSe$tion 3I7P-
C,0(42'( ,- A1&0';
A#en$( is a spe$ial t(pe o! $ontra$t- The $on$ept o! a#en$( +as de&eloped as one man
$annot possibl( do e&er( transa$tion himsel!- Hen$e' he shold ha&e opportnit( or !a$ilit( to transa$t
bsiness thro#h others li0e an a#ent- The prin$iples o! $ontra$t o! a#en$( are N 9a< E1$eptin#
matters o! a personal natre' +hat a person $an do himsel!' he $an also do it thro#h a#ent 9e-#- a
person $annot marr( thro#h an a#ent' as it is a matter o! personal natre< 9b< A person a$tin#
thro#h an a#ent is a$tin# himsel!' i-e- a$t o! a#ent is a$t o! Prin$ipal- / / Sin$e a#en$( is a $ontra$t'
all sal re"irements o! a &alid $ontra$t are appli$able to a#en$( $ontra$t also' e1$ept to the e1tent
e1$lded in the A$t- One important distin$tion is that as per se$tion 3@8' no $onsideration is
ne$essar( to $reate an a#en$(-
AGENT AND PRINCIPAL DEFINED
An Ka#entL is a person emplo(ed to do an( a$t !or another or to represent another in dealin#s
+ith third persons- The person !or +hom s$h a$t is done' or +ho is so represented' is $alled the
Kprin$ipalL Ose$tion 3@7P-
"HO MAY EMPLOY AGENT
An( person +ho is o! the a#e o! ma,orit( a$$ordin# to the la+ to +hi$h he is sb,e$t' and +ho
is o! sond mind' ma( emplo( an a#ent- OSe$tion 3@3P- / / Ths' an( person $ompetent to $ontra$t
$an appoint an a#ent-
"HO MAY BE AN AGENT
As bet+een the prin$ipal and third persons an( person ma( be$ome an a#ent' bt no person
+ho is not o! the a#e o! ma,orit( and o! sond mind $an be$ome an a#ent' so as to be responsible to
his prin$ipal a$$ordin# to the pro&isions in that behal! herein $ontained- OSe$tion 3@EP- / / The
si#ni!i$an$e is that a Prin$ipal $an appoint a minor or person o! nsond mind as a#ent- In s$h $ase'
the Prin$ipal +ill be responsible to third parties- Ho+e&er' the a#ent' +ho is a minor or o! nsond
mind' $annot be responsible to Prin$ipal- Ths' Prin$ipal +ill be liable to third parties !or a$ts done b(
A#ent' bt a#ent +ill not be responsible to Prin$ipal !or his 9i-e- A#entFs< a$ts-
CONSIDERATION NOT NECESSARY
No $onsideration is ne$essar( to $reate an a#en$(- OSe$tion 3@8P- Ths' pa(ment o! a#en$(
$ommission is not essential to hold appointment o! A#ent as &alid-
A:(.,4)(; ,- 21&0( N An a#ent $an a$t on behal! o! Prin$ipal and $an bind the Prin$ipal-
AGENTES DUTY TO PRINCIPAL
An a#ent has !ollo+in# dties to+ards prin$ipal- Y Cond$tin# prin$ipalFs bsiness as per his
dire$tions Y Carr( ot +or0 +ith normal s0ill and dili#en$e Y ;ender proper a$$onts Ose$tion 733P- Y
A#entFs dt( to $ommni$ate +ith prin$ipal Ose$tion 73EP Y Not to deal on his o+n a$$ont' in
bsiness o! a#en$( Ose$tion 738P- Y A#entFs dt( to pa( sms re$ei&ed !or prin$ipal Ose$tion 73@P Y
A#entFs dt( on termination o! a#en$( b( prin$ipalFs death or insanit( / Ose$tion 764P-
REMUNERATION TO AGENT
Consideration is not ne$essar( !or $reation o! a#en$(- Ho+e&er' i! there is an a#reement' an
a#ent is entitled to #et remneration as per $ontra$t-
RIGHTS OF PRINCIPAL
;e$o&er dama#es !rom a#ent i! he disre#ards dire$tions o! Prin$ipal Y Obtain a$$onts !rom A#ent Y
;e$o&er mone(s $olle$ted b( A#ent on behal! o! Prin$ipal Y Obtain details o! se$ret pro!it made b(
a#ent and re$o&er it !rom him Y For!eit remneration o! A#ent i! he mis$ond$ts the bsiness-
DUTIES OF PRINCIPAL
Y Pa( remneration to a#ent as a#reed
Y Indemni!( a#ent !or la+!l a$ts done b( him as a#ent
Y Indemni!( A#ent !or all a$ts done b( him in #ood !aith
Y Indemni!( a#ent i! he s!!ers loss de to ne#le$t or la$0 o! s0ill o! Prin$ipal-
TERMINATION OF AGENCY
An a#en$( is terminated b( the prin$ipal re&o0in# his athorit() or b( the a#ent renon$in# the
bsiness o! the a#en$() or b( the bsiness o! the a#en$( bein# $ompleted) or b( either the prin$ipal
or a#ent d(in# or be$omin# o! nsond mind) or b( the prin$ipal bein# ad,di$ated an insol&ent nder
the pro&isions o! an( A$t !or the time bein# in !or$e !or the relie! o! insol&ent debtors- Ose$tion 763P- / /
In !ollo+in# $ases' an a#en$( $annot be re&o0ed N Y A#en$( $opled +ith interest 9se$tion 767< Y
A#ent has alread( e1er$ised his athorit( 9se$tion 763< Y A#ent has in$rred personal liabilit(-
INDEMNITY AND GUARANTEE? <I07)20 L28=
37E-2Contra$t o! indemnit(2 de!ined-
37E-2Contra$t o! indemnit(2 de!ined-/A $ontra$t b( +hi$h one part( promises to sa&e the other
!rom loss $ased to him b( the $ond$t o! the promisor himsel!' or b( the $ond$t o! an( other
person' is $alled a 2 $ontra$t o! indemnit(2-
Illstration
A $ontra$ts to indemni!( B a#ainst the $onse"en$es o! an( pro$eedin#s +hi$h C ma( ta0e a#ainst B
in respe$t o! a $ertain sm o!
766 rpees- This is a $ontra$t o! indemnit(-
378- ;i#hts o! indemnit( holder +hen sed-
378- ;i#hts o! indemnit( holder +hen sed- The promisee in a $ontra$t o! indemnit(' a$tin# +ithin the
s$ope o! his athorit(' is entitled to re$o&er !rom the promisor/
93< all dama#es +hi$h he ma( be $ompelled to pa( in an( sit in respe$t o! an( matter to +hi$h the
promise to indemni!( applies
97< all $osts +hi$h he ma( be $ompelled to pa( in an( s$h sit i!' in brin#in# or de!endin# it' he did
not $ontra&ene the orders o! the promisor' and a$ted as it +old ha&e been prdent !or him to a$t in
the absen$e o! an( $ontra$t o! indemnit(' or i! the promisor athori%ed him to brin# or de!end the
sit )
93< all sms +hi$h he ma( ha&e paid nder the terms o! an( $ompromise o! an( s$h sit' i! the
$ompromise +as not
86 $ontrar( to the orders o! the promisor' and +as one +hi$h it +old ha&e been prdent !or the
promisee to ma0e in the absen$e o! an( $ontra$t o! indemnit(' or i! the promisor athori%ed him to
$ompromise the sit-
375-2Contra$t o! #arantee2' 2sret(2' prin$ipal debtor2 and 2$reditor2-
375-2Contra$t o! #arantee2' 2sret(2' prin$ipal debtor2 and
2$reditor2-/A 2$ontra$t o! #aranteeL is a $ontra$t to per!orm the promise' or dis$har#e the liabilit(' o! a
third person in $ase o! his de!alt- The person +ho #i&es the #arantee is $alled the Ksret(2)
the person in respe$t o! +hose de!alt the #arantee is #i&en is $alled the 2 prin$ipal debtor 2' and the
person to +hom the #arantee is #i&en is $alled the 2 $reditor 2- A #arantee ma( be either oral or
+ritten-
37I- Consideration !or #arantee-
37I- Consideration !or #arantee-/An(thin# done' or an( promise made' !or the bene!it o! the
prin$ipal debtor' ma( be a s!!i$ient $onsideration to the sret( !or #i&in# the #arantee-
Illstrations
9a< B re"ests A to sell and deli&er to him #oods on $redit- A
a#rees to do so' pro&ided C +ill #arantee the pa(ment o! the pri$e o! the #oods- C promises to
#arantee the pa(ment in $onsideration o! as promise to deli&er the #oods- This is a s!!i$ient
$onsideration !or Cs promise-
9b< A sells and deli&ers #oods to B- C a!ter+ards re"ests A to !orbear to se B !or the debt !or a
(ear' and promises that' i! he does so' C +ill pa( !or them in de!alt o! pa(ment b( B- A a#rees to
!orbear as re"ested- This is a s!!i$ient $onsideration !or Cs promise-
9$< A sells and deli&ers #oods to B- C a!ter+ards' +ithot $onsideration' a#rees to pa( !or them in
de!alt o! B- The a#reement is &oid-
7@- Sret(s liabilit(-
37@- Sret(s liabilit(-/The liabilit( o! the sret( is $o/
e1tensi&e +ith that o! the prin$ipal debtor' nless it is other+ise pro&ided b( the $ontra$t-
Illstration
A #arantees to B the pa(ment o! a bill o! e1$han#e b( C' the a$$eptor- The bill is dishonored b( C- A
is liable not onl( !or the amont o! the bill bt also !or an( interest and $har#es +hi$h ma( ha&e
be$ome de on it-
374-2Continin# #arantee2-
374-2Continin# #arantee2-/A #arantee +hi$h e1tends to a series series o! transa$tions is $alled a
2$ontinin# #arantee2-
Illstrations
9a< A' in $onsideration that B +ill emplo( C in $olle$tin# the rent o! Bs %amindari' promises B to be
responsible' to the amont o!
8'666 rpees' !or the de $olle$tion and pa(ment b( C o! those rents-
This is a $ontinin# #arantee-
9b< A #arantees pa(ment to B' a tea/dealer' to the amont o! pond 366' !or an( tea he ma( !rom
time to time sppl( to C- B
spplies C +ith tea to abo&e the &ale o! pond 366' and C pa(s B !or it- A!ter+ards B spplies C
+ith tea to the &ale o! pond 766- C
!ails to pa(- The #arantee #i&en b( A +as a $ontinin# #arantee' and he is a$$ordin#l( liable to B
to the e1tent o! pond 366-
83-9$< A #arantees pa(ment to B o! the pri$e o! !i&e sa$0s o! !lor to be deli&ered b( B to C and to be
paid !or in a month- B
deli&ers !i&e sa$0s to C- C pa(s !or them- A!ter+ards B deli&ers !or sa$0s to C' +hi$h C does riot pa(
!or- The #arantee #i&en b( A +as not a $ontinin# #arantee' and a$$ordin#l( he is not liable !or the
pri$e o! the !or sa$0s-
336- ;e&o$ation o! $ontinin# #arantee-
336- ;e&o$ation o! $ontinin# #arantee-/A $ontinin# #arantee ma( at an( time be re&o0ed b( the
sret(' as to !tre transa$tions' b( noti$e to the $reditor-
Illstrations
9a< A' in $onsideration o! Bs dis$ontin#' at As re"est' bills o! e1$han#e !or C' #arantees to B' !or
t+el&e months' the de pa(ment o! all s$h bills to the e1tent o! 8'666 rpees- B
dis$onts bills !or C to the e1tent o! 7'666 rpees- A!ter+ards' at the end o! three months' A re&o0es
the #arantee- This re&o$ation dis$har#es A !rom all liabilit( to B !or an( sbse"ent dis$ont- Bt
A is liable to B !or the 7'666 rpees' on de!alt o! C-
9b< A #arantees to B' to the e1tent o! 36'666 rpees' that C
shall pa( all the bills that B shall dra+ pon him- B dra+s pon C- C
a$$epts the bill- A #i&es noti$e o! re&o$ation- C dishonors the bill at matrit(- A is liable pon his
#arantee-
333- ;e&o$ation o! $ontinin# #arantee b( sret(s death-
333- ;e&o$ation o! $ontinin# #arantee b( sret(s death-/The death o! the sret( operates' in the
absen$e o! an( $ontra$t to the $ontrar(' as a re&o$ation o! a $ontinin# #arantee' so !ar as re#ards
!tre transa$tions-
337- Liabilit( o! t+o persons' primaril( liable' not a!!e$ted b( arran#ement bet+een them that one
shall be sret( on others de!alt-
337- Liabilit( o! t+o persons' primaril( liable' not a!!e$ted b( arran#ement bet+een them that one
shall be sret( on others de!alt-/
.here t+o persons $ontra$t +ith a third person to nderta0e a $ertain liabilit(' and also $ontra$t +ith
ea$h other that one o! them shall be liable onl( on the de!alt o! the other' the third person not bein#
a part( to s$h $ontra$t' the liabilit( o! ea$h o! s$h t+o persons to the third person nder the !irst
$ontra$t is not a!!e$ted b( the e1isten$e o! the se$ond $ontra$t' altho#h s$h third person ma( ha&e
been a+are o! its e1isten$e-
Illstration
A and B ma0e a ,oint and se&eral promissor( note to C- A ma0es it' in !a$t' as sret( !or B' and C
0no+s this at the time +hen the note is made- The !a$t that A' to the 0no+led#e o! C' made the note
as sret( !or B' is no ans+er to a sit b( C a#ainst A pon the note-
333- >is$har#e o! sret( b( &arian$e in terms o! $ontra$t-
333- >is$har#e o! sret( b( &arian$e in terms o! $ontra$t-/An( &arian$e' made +ithot the sret(s
$onsent' in the terms o! the $ontra$t bet+een the prin$ipal 3OdebtorP and the $reditor' dis$har#es the
sret( as to transa$tions sbse"ent to the &arian$e-
Illstrations
(a) A be$omes sret( to C !or Bs $ond$t as a mana#er in Cs ban0- A!ter+ards B and C $ontra$t'
+ithot as $onsent' that Bs salar( shall be raised' and that he shall be$ome liable !or one/
!orth o! the losses on o&erdra!ts- B allo+s a $stomer to o&erdra+' and the ban0 loses a sm
o! mone(- A is
/////////////////////////////////////////////////////////////////////
3 Ins- b( A$t 7E o! 343I' s- 7 and S$h- I-
/////////////////////////////////////////////////////////////////////
87-dis$har#ed !rom his sret( ship b( the &arian$e made +ithot his $onsent' and is not liable to
ma0e #ood this loss-
9b< A #arantees C a#ainst the mis$ond$t o! B in an o!!i$e to +hi$h B is appointed b( C' and o!
+hi$h the dties are de!ined b( an A$t o! the Le#islatre- B( a sbse"ent A$t' the natre o! the
o!!i$e is materiall( altered- A!ter+ards' B mis$ond$ts himsel!- A is dis$har#ed b( the $han#e !rom
!tre liabilit( nder his #arantee' tho#h the mis$ond$t o! B is in respe$t' o! a dt( not a!!e$ted b(
the later A$t-
9$< C a#rees to appoint B as his $ler0 to sell #oods at a (earl( salar(' pon As be$omin# sret( to C
!or Bs dl( a$$ontin# !or mone(s re$ei&ed b( him as s$h $ler0- A!ter+ards' +ithot As 0no+led#e
or $onsent' C and B a#ree that B shold be paid b( a $ommission on the #oods sold b( him and not
b( a !i1ed salar(- A is not liable !or sbse"ent mis$ond$t o! B-
9d< A #i&es to C a $ontinin# #arantee to the e1tent o! 3'666
rpees !or an( oil spplied b( C to B on $redit- A!ter+ards B be$omes embarrassed' and' +ithot the
0no+led#e o! A' B and C $ontra$t that C shall $ontine to sppl( B +ith oil !or read( mone(' and that
the pa(ments shall be applied to the then e1istin# debts bet+een B and C- A is not liable on his
#arantee !or an( #oods spplied a!ter: this ne+ arran#ement-
9e< C $ontra$ts to lend B 8'666 rpees on the 3st *ar$h- A #arantees repa(ment- C pa(s the 8'666
rpees to B on the 3
st
Banar(- A is dis$har#ed !rom his liabilit(' as the $ontra$t has been &aried'
inasm$h as C mi#ht se B !or the mone( be!ore the 3st o! *ar$h-
33E- >is$har#e o! sret( b( release or dis$har#e o! prin$ipal debtor-
33E- >is$har#e o! sret( b( release or dis$har#e o! prin$ipal debtor-/The sret( is dis$har#ed b( an(
$ontra$t bet+een the $reditor and the prin$ipal debtor' b( +hi$h the prin$ipal debtor is released or b(
an( a$t or omission o! the $reditor' the le#al $onse"en$e o! +hi$h is the dis$har#e o! the prin$ipal
debtor-
Illstrations
9a< A #i&es a #arantee to C !or #oods to be spplied b( C to B-
C spplies #oods to B' and a!ter+ards B be$omes embarrassed and $ontra$ts +ith his $reditors
9in$ldin# C< to assi#n to them his propert( in $onsideration o! their releasin# him !rom their
demands-
Here B is released !rom his debt b( the $ontra$t +ith C' and A is dis$har#ed !rom his sret( ship-
9b< A $ontra$ts +ith B to #ro+ a $rop o! indi#o an As land and to deli&er it to B at a !i1ed rate' and C
#arantees As per!orman$e o! this $ontra$t- B di&erts a stream o! +ater +hi$h is ne$essar( !or
irri#ation o! As land and thereb( pre&ents him !rom raisin# the indi#o- C is no lon#er liable on his
#arantee-
9$< A $ontra$ts +ith B !or a !i1ed pri$e to bild a hose !or B +ithin a stiplated time' B sppl(in# the
ne$essar( timber- C #arantees as per!orman$e o! the $ontra$t- B omits to sppl( the timber- C is
dis$har#ed !rom his sret( ship-
338-
>is$har#e o! sret( +hen $reditor $omponds +ith' #i&es time to' or a#rees not to se' prin$ipal
debtor-
338- >is$har#e o! sret( +hen $reditor $omponds +ith' #i&es time to' or a#rees not to se' prin$ipal
debtor-/A $ontra$t bet+een the $reditor and the prin$ipal debtor' b( +hi$h the $reditor ma0es a
$omposition +ith' or promises to #i&e time to' or not to se' the prin$ipal debtor' dis$har#es the
sret(' nless the sret( assents to s$h $ontra$t-
83-335- Sret( not dis$har#ed +hen a#reement made +ith third person to #i&e time to prin$ipal
debtor-
335- Sret( not dis$har#ed +hen a#reement made +ith third person to #i&e time to prin$ipal debtor-
.here a $ontra$t to #i&e time to the prin$ipal debtor is made b( the $reditor +ith a third person' and
not +ith the prin$ipal debtor' the sret( is not dis$har#ed-
Illstration
C' the holder o! an o&erde bill o! e1$han#e dra+n b( A as sret( !or B' and a$$epted b( B' $ontra$ts
+ith * to #i&e time to B- A is not dis$har#ed-
33I- Creditors !orbearan$e to se does not dis$har#e sret(-
33I- Creditors !orbearan$e to se does not dis$har#e sret(-/ *ere !orbearan$e on the part o! the
$reditor to se the prin$ipal debtor or to en!or$e an( other remed( a#ainst him does not' in the
absen$e o! an( pro&ision in the #arantee to the $ontrar(' dis$har#e the sret(-
Illstration
B o+es to C a debt #aranteed b( A- The debt be$omes pa(able- C does not se B !or a (ear a!ter
the debt has be$ome pa(able- A is not dis$har#ed !rom his sret( ship-
33@- ;elease o! one $o/sret( does not dis$har#e others-
33@-;elease o! one $o/sret( does not dis$har#e others-/.here there are $o/sreties' a release b(
the $reditor o! one o! them does not dis$har#e the others) neither does it !ree the sret( so released
!rom his responsibilit( to the other sreties-
334- >is$har#e o! sret( b( $reditors a$t or omission impairin# sret(s e&ental remed(-
334- >is$har#e o! sret( b( $reditors a$t or omission impairin# sret(s e&ental remed(-/I! the
$reditor does an( a$t +hi$h is in$onsistent +ith the ri#hts o! the sret(' or omits to do an( a$t +hi$h
his dt( to the sret( re"ires him to do' and the e&ental remed( o! the sret( himsel! a#ainst the
prin$ipal debtor is thereb( impaired' the sret( is dis$har#ed-
L&++,0 8
TORT - NEGLIGENCE IN SHIPPING AND DEFENSES AGAINST
TORTUOUS LIABILITIES
Tort la+ is the name #i&en to a bod( o! la+ that addresses' and pro&ides remedies !or' $i&il +ron#s
not arisin# ot o! $ontra$tal obli#ations- A person +ho s!!ers le#al dama#es ma( be able to se tort
la+ to re$ei&e $ompensation !rom someone +ho is le#all( responsible' or 2liable'2 !or those in,ries-
:enerall( spea0in#' tort la+ de!ines +hat $onstittes a le#al in,r( and establishes the $ir$mstan$es
nder +hi$h one person ma( be held liable !or another=s in,r(- Torts $o&er intentional a$ts and
a$$idents-
For instan$e' Ali$e thro+s a ball and a$$identall( hits Brenda in the e(e- Brenda ma( se Ali$e
!or losses o$$asioned b( the a$$ident 9e-#-' $osts o! medi$al treatment' lost in$ome drin# time o!!
+or0' pain and s!!erin#' et$-<- .hether or not Brenda +ins her sit depends on i! she $an pro&e Ali$e
en#a#ed in tortios $ond$t- Here' Brenda +old attempt to pro&e Ali$e had a dt( and !ailed to
e1er$ise the standard o! $are +hi$h a reasonable person +old render in thro+in# the ball-
One o! the main topi$s o! the sbstan$e o! tort la+ is determinin# the 2standard o! $are2 / a
le#al phrase that means distin#ishin# bet+een +hen $ond$t is or is not tortios- Pt another +a('
the bi# isse is +hether a person s!!ers the loss !rom his o+n in,r(' or +hether it #ets trans!erred to
someone else-
:oin# ba$0 to the e1ample abo&e' i! Ali$e thre+ the ball at Brenda on prpose' Brenda $old
se !or the intentional tort o! batter(- I! it +as an a$$ident' Brenda mst pro&e ne#li#en$e- To do this'
Brenda mst sho+ that her in,r( +as reasonabl( !oreseeable' that Ali$e o+ed Brenda a dt( o! $are
not to hit her +ith the ball' and that Ali$e !ailed to meet the standard o! $are re"ired-
In m$h o! the +estern +orld' the to$hstone o! tort liabilit( is ne#li#en$e- I! the in,red part(
$annot pro&e that the person belie&ed to ha&e $ased the in,r( a$ted +ith ne#li#en$e' at the &er(
least' tort la+ +ill not $ompensate them- Tort la+ also re$o#ni%es intentional torts and stri$t liabilit('
+hi$h appl( to de!endants +ho en#a#e in $ertain a$tions-
In tort la+' in,r( is de!ined broadl(- In,r( does not ,st mean a ph(si$al in,r(' s$h as +here
Brenda +as str$0 b( a ball- In,ries in tort la+ re!le$t an( in&asion o! an( nmber o! indi&idal
2interests-2 This in$ldes interests re$o#ni%ed in other areas o! la+' s$h as propert( ri#hts- A$tions
!or nisan$e and trespass to land $an arise !rom inter!erin# +ith ri#hts in real propert(- Con&ersion
and trespass to $hattels $an prote$t inter!eren$e +ith mo&able propert(- Interests in prospe$ti&e
e$onomi$ ad&anta#es !rom $ontra$ts $an also be in,red and be$ome the sb,e$t o! tort a$tions- A
nmber o! sitations $ased b( parties in a $ontra$tal relationship ma( ne&ertheless be tort rather
than $ontra$t $laims' s$h as brea$h o! !id$iar( dt(-
Tort la+ ma( also be sed to $ompensate !or in,ries to a nmber o! other indi&idal interests
that are not re$o#ni%ed in propert( or $ontra$t la+' and are intan#ible- This in$ldes an interest in
!reedom !rom emotional distress' pri&a$( interests' and reptation- These are prote$ted b( a nmber
o! torts s$h as in!li$tion' pri&a$( torts' and de!amation- >e!amation and pri&a$( torts ma(' !or
e1ample' allo+ a $elebrit( to se a ne+spaper !or pblishin# an ntre and harm!l statement abot
him- Other prote$ted interests in$lde !reedom o! mo&ement' prote$ted b( the intentional tort o! !alse
imprisonment-
The e"i&alent o! tort in $i&il la+ ,risdi$tions is deli$t- The la+ o! torts $an be $ate#ori%ed as
part o! the la+ o! obli#ations' bt nli0e &olntaril( assmed obli#ations 9s$h as those o! $ontra$t' or
trst<' the dties imposed b( the la+ o! torts appl( to all those sb,e$t to the rele&ant ,risdi$tion- To
beha&e in =tortios= manner is to harm another=s bod(' propert(' or le#al ri#hts' or possibl(' to brea$h
a dt( o+ed nder statte- One +ho $ommits a tortios a$t is $alled a 2tort!easor2- Torts is one o! the
Ameri$an Bar Asso$iation mandator( !irst (ear la+ s$hool $orses-
C2(&1,4)&+ ,- (,4(+
Torts ma( be $ate#ori%ed in a nmber o! +a(s: one s$h is to di&ide them into Ne#li#en$e
Torts' and Intentional Torts-
The dominant a$tion in tort is ne#li#en$e- The tort o! ne#li#en$e pro&ides a $ase o! a$tion
leadin# to dama#es' or to in,n$ti&e relie!' in ea$h $ase desi#ned to prote$t le#al ri#hts' in$ldin#
those o! personal sa!et(' propert(' and' in some $ases' intan#ible e$onomi$ interests- Ne#li#en$e
a$tions in$lde $laims arisin# primaril( !rom atomobile a$$idents and personal in,r( a$$idents o!
man( 0inds' in$ldin# $lini$al ne#li#en$e- Prod$t liabilit( $ases ma( also be $onsidered ne#li#en$e
a$tions' bt there is !re"entl( a si#ni!i$ant o&erla( o! additional stattor( $ontent-
Amon# intentional torts ma( be $ertain torts arisin# ot o! the o$$pation or se o! land- One
s$h is the tort o! nisan$e' +hi$h $onnotes stri$t liabilit( !or a nei#hbor +ho inter!eres +ith another=s
en,o(ment o! his real propert(- Trespass allo+s o+ners to se !or in$rsions b( a person 9or his
str$tre' !or e1ample an o&erhan#in# bildin#< on their land- There is a tort o! !alse imprisonment'
and a tort o! de!amation' +here someone ma0es an nspportable alle#ation represented to be
!a$tal +hi$h dama#es the reptation o! another-
.or0ers= $ompensation la+s +ere a le#islati&e response to the $ommon la+ torts do$trine
pla$in# limits on the e1tent to +hi$h emplo(ees $old se their emplo(ers in respe$t o! in,ries
sstained drin# emplo(ment-
N&15)1&0'&
Ne#li#en$e is a tort +hi$h depends on the e1isten$e o! a brea$h o! dt( o! $are o+ed b( one
person to another- One +ell/0no+n $ase is $onoghue v Stevenson +here *rs- >ono#he
$onsmed part o! a drin0 $ontainin# a de$omposed snail +hile in a pbli$ bar in Paisle(' S$otland
and $laimed that it had made her ill- The snail +as not &isible' as the bottle o! #in#er beer in +hi$h it
+as $ontained +as opa"e- Neither her !riend' +ho bo#ht it !or her' nor the shop0eeper +ho sold it
+as a+are o! its presen$e- The man!a$trer +as *r- Ste&enson' +hom *rs- >ono#he sed !or
dama#es !or ne#li#en$e- She $old not se *r- Ste&enson !or dama#es !or brea$h o! $ontra$t
be$ase there +as no $ontra$t bet+een them- The ma,orit( o! the members o! the Hose o! Lords
a#reed 93/7< that *rs- >ono#he had a &alid $laim' bt disa#reed as to +h( s$h a $laim shold
e1ist- Lord *a$millan tho#ht this shold be treated as a ne+ prod$t liabilit( $ase- Lord At0ins
ar#ed that the la+ shold re$o#ni%e a ni!(in# prin$iple that +e o+e a dt( o! reasonable $are to or
nei#hbors- He "oted the Bible in spport o! his ar#ment' spe$i!i$all( the #eneral prin$iple that 2tho
shalt lo&e th( nei#hbor-2 The elements o! ne#li#en$e are:
>t( o! $are
Brea$h o! that dt(
Brea$h bein# a pro1imate or not too remote a $ase' in la+
Brea$h $asin# harm in !a$t
S(2(:(,4; (,4(+
A stattor( tort is li0e an( other' in that it imposes dties on pri&ate or pbli$ parties) ho+e&er
the( are $reated b( the le#islatre' not the $orts- One e1ample is in $onsmer prote$tion' +ith the
%roduct &iability $irective in the Eropean ?nion' +here bsinesses ma0in# de!e$ti&e prod$ts that
harm people mst pa( !or an( dama#e resltin#- Liabilit( !or de!e$ti&e prod$ts is stri$t in most
,risdi$tions- The theor( o! ris0 spreadin# pro&ides spport !or this approa$h- Sin$e man!a$trers
are the =$heapest $ost a&oiders=' be$ase the( ha&e a #reater $han$e to see0 ot problems' it ma0es
sense to #i&e them the in$enti&e to #ard a#ainst prod$t de!e$ts-
Another e1ample is the O$$piers= Liabilit( A$ts in the ?J +hereb( a person' s$h as a shop
o+ner' +ho in&ites others onto land' or has trespassers' o+es a minimm dt( o! $are !or people=s
sa!et(- One earl( $ase +as 'oo!e v Midland (reat "estern )ailway of *reland' +here Lord
*a$Na#hton !elt that $hildren +ho +ere hrt +hilst loo0in# !or berries on a bildin# site' shold ha&e
some $ompensation !or their n!ortnate $riosit(- Stattor( torts also spread a$ross +or0pla$e
health and sa!et( la+s and health and sa!et( in !ood prod$e-
The $on$ept o! stattor( torts is not held thro#hot all $ommon/la+ $ontries' ho+e&er-
Corts in both the ?nited States and Canada ha&e re,e$ted the $on$ept that a stattor( dt( $an be
the basis o! a pri&ate $ase o! a$tion' absent a spe$i!i$ pro&ision in statte athori%in# s$h a $ase
o! a$tion-
N:)+20'&
Le#all(' the term Knisan$eL is traditionall( sed in three +a(s: 93< to des$ribe an a$ti&it( or
$ondition that is harm!l or anno(in# to others 9e-#-' inde$ent $ond$t' a rbbish heap or a smo0in#
$himne(<) 97< to des$ribe the harm $ased b( the be!ore/mentioned a$ti&it( or $ondition 9e-#-' lod
noises or ob,e$tionable odors<) and 93< to des$ribe a le#al liabilit( that arises !rom the $ombination o!
the t+o- The la+ o! nisan$e +as $reated to stop s$h bothersome a$ti&ities or $ond$t +hen the(
nreasonabl( inter!ered either +ith the ri#hts o! other pri&ate lando+ners 9i-e-' pri&ate nisan$e< or
+ith the ri#hts o! the #eneral pbli$ 9i-e-' pbli$ nisan$e<-
The tort o! nisan$e allo+s a $laimant 9!ormerl( plainti!!< to se !or most a$ts that inter!ere +ith
their se and en,o(ment o! their land- A #ood e1ample o! this is in the $ase o! +ones v %owell 93574<-
A bre+er( made stin0in# &apors +hi$h +a!ted onto nei#hbors= propert(' dama#in# his papers- As he
+as a lando+ner' the nei#hbor sed in nisan$e !or this dama#e- Bt .hitelo$0e B' spea0in# !or the
Cort o! the Jin#=s Ben$h' said that be$ase the +ater sppl( +as $ontaminated' it +as better that
the nei#hbor=s do$ments +ere ris0ed- He said 2it is better that the( shold be spoiled than that the
$ommon +ealth stand in need o! #ood li"or-2 No+ada(s' inter!erin# +ith nei#hbors= propert( is not
loo0ed pon so 0indl(- Nisan$e deals +ith all 0inds o! thin#s that spoil a lando+ner=s en,o(ment o!
his propert(-
A sbset o! nisan$e is 0no+n as the rle in )ylands v ,letcher +here a dam brst into a $oal
mine sha!t- So a dan#eros es$ape o! some ha%ard' in$ldin# +ater' !ire' or animals means stri$t
liabilit( in nisan$e- This is sb,e$t onl( to a remoteness $ap' !amiliar !rom ne#li#en$e +hen the e&ent
is nsal and npredi$table- This +as the $ase +here $hemi$als !rom a !a$tor( seeped thro#h a
!loor into the +ater table' $ontaminatin# East An#lia=s reser&oirs-
!)'24),:+ 5)2$)5)(;
The +ord =&i$arios= deri&es !rom the Latin !or =$han#e= or =alternation= or =stead= and in tort la+
re!ers to the idea o! one person bein# liable !or the harm $ased b( another' be$ase o! some le#all(
rele&ant relationship- An e1ample mi#ht be a parent and a $hild' or an emplo(er and an emplo(ee-
Yo $an se an emplo(er !or the dama#e to (o b( their emplo(ee' +hi$h +as $ased =in the $orse
o! emplo(ment-= For e1ample' i! a shop emplo(ee spilled $leanin# li"id on the spermar0et !loor' one
$old se the emplo(ee +ho a$tall( spilled the li"id' or se the emplo(ers- In the a!orementioned
$ase' the latter option is more pra$ti$al as the( are more li0el( to ha&e more mone(- The la+ replies
2sin$e (or emplo(ee harmed the $laimant in the $orse o! his emplo(ment' (o bear responsibilit(
!or it' be$ase (o ha&e the $ontrol to hire and !ire him' and red$e the ris0 o! it happenin# a#ain-2
There is $onsiderable a$ademi$ debate abot +hether &i$arios liabilit( is ,sti!ied on no better basis
than the sear$h !or a sol&ent de!endant' or +hether it is +ell !onded on the theor( o! e!!i$ient ris0
allo$ation-
D&-&0+&+
A s$$ess!l de!ense absol&es the de!endant !rom !ll or partial liabilit( !or dama#es- Apart
!rom proo! that there +as no brea$h o! dt(' there are three prin$ipal de!en$es to tortios liabilit(-
C,0+&0(
This is Latin !or 2to the +illin#' no in,r( is done2- It operates +hen the $laimant either
e1pressl( or impli$itl( $onsents to the ris0 o! loss or dama#e- For e1ample' i! a spe$tator at an i$e
ho$0e( mat$h is in,red +hen a pla(er stri0es the p$0 in the ordinar( $orse o! pla(' $asin# it to !l(
ot o! the rin0 and hit him or her' this is a !oreseeable e&ent and spe$tators are assmed to a$$ept
that ris0 o! in,r( +hen b(in# a ti$0et- A sli#htl( more limited de!ense ma( arise +here the de!endant
has been #i&en a +arnin#' +hether e1pressl( to the $laimant or b( a pbli$ noti$e' si#n or other+ise'
that there is a dan#er o! in,r(- The e1tent to +hi$h de!endants $an rel( on noti$es to e1$lde or limit
liabilit( &aries !rom $ontr( to $ontr(- This is an isse o! poli$( as to +hether 9prospe$ti&e<
de!endants shold not onl( +arn o! a 0no+n dan#er' bt also ta0e a$ti&e steps to !en$e the site and
ta0e other reasonable pre$ations to pre&ent the 0no+n dan#er !rom be!allin# those !oreseen to be at
ris0-
C,0(4)$:(,4; 0&15)1&0'&
This is either a miti#ator( de!ense or' in the ?nited States' it ma( be an absolte de!ense-
.hen sed as a miti#ator( de!ense' it is o!ten 0no+n in the ?-S- as $omparati&e ne#li#en$e- ?nder
$omparati&e ne#li#en$e a plainti!!A$laimant=s a+ard is red$ed b( the per$enta#e o! $ontribtion
made b( the plainti!! to the loss or dama#e s!!ered- Ths' in e&alatin# a $ollision bet+een t+o
&ehi$les' the $ort mst not onl( ma0e a !indin# that both dri&ers +ere ne#li#ent' bt it mst also
apportion the $ontribtion made b( ea$h dri&er as a per$enta#e' e-#- that the blame bet+een the
dri&ers is 76M attribtable to the plainti!!A$laimant: @6M to the de!endant- The $ort +ill then "anti!(
the dama#es !or the a$tal loss or dama#e sstained' and then red$es the amont paid to the
plainti!!A$laimant b( 76M- .hile $ontribtor( ne#li#en$e retains a si#ni!i$ant role' an in$reasin#
nmber o! ,risdi$tions' parti$larl( +ithin the ?nited States' are e&ol&in# to+ard a re#ime o!
$omparati&e ne#li#en$e- All bt !or ?S states no+ !ollo+ a stattoril( $reated re#ime o! $omparati&e
ne#li#en$e-
Contribtor( ne#li#en$e has been +idel( $riti$i%ed as bein# too dra$onian' in that a plainti!!
+hose !alt +as $omparati&el( minor mi#ht re$o&er nothin# !rom a more e#re#iosl( irresponsible
de!endant-- Comparati&e ne#li#en$e has also been $riti$i%ed' sin$e it +old allo+ a plainti!! +ho is
re$0lessl( 48M ne#li#ent to re$o&er 8M o! the dama#es !rom the de!endant' and o!ten more +hen a
,r( is !eelin# s(mpatheti$- E$onomists ha&e !rther $riti$i%ed $omparati&e ne#li#en$e' sin$e nder
the Learned Hand ;le it +ill not (ield optimal pre$ation le&els-
I55&125)(;
E1 trpi $asa non oritr a$tio is the ille#alit( de!en$e' the Latin !or 2no ri#ht o! a$tion arises
!rom a despi$able $ase2- I! the $laimant is in&ol&ed in +ron#doin# at the time the alle#ed ne#li#en$e
o$$rred' this ma( e1tin#ish or red$e the de!endant=s liabilit(- Ths' i! a br#lar is &erball(
$hallen#ed b( the propert( o+ner and sstains in,r( +hen ,mpin# !rom a se$ond stor( +indo+ to
es$ape apprehension' there is no $ase o! a$tion a#ainst the propert( o+ner e&en tho#h that in,r(
+old not ha&e been sstained 2bt !or2 the propert( o+ner=s inter&ention-
R&3&7)&+
The main remed( a#ainst tortios loss is $ompensation in =dama#es= or mone(- In a limited
ran#e o! $ases' tort la+ +ill tolerate sel!/help' s$h as reasonable !or$e to e1pel a trespasser- This is
a de!en$e a#ainst the tort o! batter(- Frther' in the $ase o! a $ontinin# tort' or e&en +here harm is
merel( threatened' the $orts +ill sometimes #rant an in,n$tion- This means a $ommand' !or
somethin# other than mone( b( the $ort' s$h as restrainin# the $ontinan$e or threat o! harm-
?sall( in,n$tions +ill not impose positi&e obli#ations on tort!easors' bt some Astralian
,risdi$tions $an ma0e an order !or spe$i!i$ per!orman$e to ensre that the de!endant $arries ot their
le#al obli#ations' espe$iall( in relation to nisan$e matters-
L&++,0 9
BILLS OF LADING
DEFINITION
In this Bill o! Ladin#
KCarrierL means ANL Container Line Pt( Limited tradin# as ANL)
K:oodsL means the arti$les o! other $ar#o a$$epted !rom the Shipper !or transportation andAor
!or+ardin# and in$ldes an( Container9s< not spplied b( or behal! o! the Carrier)
KHa#e ;lesL means' nless alternati&e pro&isions are made b( national le#islation' the pro&isions
o! the International Con&ention !or the ?ni!i$ation o! Certain ;les relatin# to Bills o! Ladin# si#ned at
Brssels on 78th A#st' 347E and in$ldes the amendments b( the Proto$ol si#ned at Brssels on
73rd Febrar(' 345@' bt onl( i! s$h amendments are $omplsoril( appli$able to this Bill o! Ladin#-
9It is e1pressl( pro&ided that nothin# in this Bill o! Ladin# shall be $onstred as $ontra$tall( appl(in#
said ;les as amended b( said Proto$ol-<)
KDesselL means the intended O$ean Dessel 9i! an(< and an( &essel' $ra!t' li#hter or other
means o! $on&e(an$e b( +ater +hi$h ma( be sbstitted in +hole or in part !or s$h intended O$ean
Dessel or onto +hi$h :oods ma( other+ise be loaded !or the prpose o! bein# transported thereon in
!rtheran$e o! the $arria#e $o&ered b( this Bill o! Ladin# or an( part thereo!) KCon&e(an$eL means
an( &ehi$le' rail tr$0' air$ra!t' $on&e(an$e or other means o! transportation b( land or air onto +hi$h
:oods ma( be loaded !or prpose
o! bein# transported in !rtheran$e o! the $arria#e $o&ered b( this Bill o! Ladin#)
K*er$hantL means the Shipper' the Consi#nee and an( person +ho is or be$omes an
endorsee or holder o! this Bill o! Ladin# or o+ner or re$ei&er o! :oods or entitled to ha&e possession
thereo! !rom the Carrier) KContainerL means an( $ontainer' !lat' pallet or other !orm o! $ar#o $arr(in#
nit or e"ipment re!erred to on the !a$e hereo! or in or on +hi$h an( :oods ma( be niti%ed or
other+ise pa$0ed or sto+ed either +hen re$ei&ed b( the Carrier !or $arria#e herender or at an(
sbse"ent time prior to deli&er( in a$$ordan$e +ith Clase 3493<) KPla$e o! re$eiptL means the
CarrierFs sea terminal at the Port o! Loadin# 9O$ean Dessel< nless a Pla$e o! re$eipt is nominated in
the spa$e pro&ided !or that prpose on the !ront hereo! in +hi$h $ase KPla$e o! re$eiptL shall mean
the Pla$e o! re$eipt so nominated) KPla$e o! deli&er(L means the Port o! >is$har#e 9O$ean Dessel<
nless a Pla$e o! deli&er( is nominated in the spa$e pro&ided !or that prpose on the !ront
hereo! in +hi$h $ase KPla$e o! deli&er(L shall mean the Pla$e o! deli&er( so nominated' sb,e$t
ho+e&er to Condition 5) KCombined TransportL arises i! the Pla$e o! re$eipt andAor the Pla$e o!
deli&er( are indi$ated on the !a$e hereo! in the rele&ant spa$es and ma( in$lde $arria#e b( more
than one mode o! transport) KPort to PortL arises i! the Carria#e is not Combined Transport-
CONTRACTING PARTIES
In a#reein# to and a$$eptin# the terms o! this Bill o! Ladin# the Shipper a$ts !or himsel! and on
behal! o! ea$h *er$hant- The Shipper .arrants to the Carrier that he is entitled and is dl(
athori%ed b( e&er( other person +ho o+ns or is entitled to possession o! the :oods or this Bill o!
Ladin# to a#ree to and a$$ept this Bill o! Ladin# and to deli&er the :oods to the Carrier on the terms
hereo!- .ithot pre,di$e to the !ore#oin# ea$h *er$hant +ho a$$epts this Bill o! Ladin# !rom the
Carrier or a$$epts endorsement or deli&er( hereo! !rom the Shipper' Consi#nee or an( other prior
endorsee or holder +ho presents this Bill o! ladin# to the Carrier or re$ei&es deli&er( o! an( :oods
!rom the Carrier herender b( s$h a$tion on his part a$$epts and shall be deemed to $on!irm' rati!(
and a#ree irre&o$abl( +ith the Carrier to be bond b( all o! the stiplations' e1$eptions and $onditions
stated herein +hether +ritten' printed' stamped or other+ise in$orporated on the !ront or ba$0 hereo!
in$ldin# the pro&isions o! the CarrierFs appli$able tari!! +hi$h are re!erred to in Clase 7393< and that
the $ontra$t $ontained or e&iden$ed herein shall be !ll( bindin# bet+een the Carrier and s$h
mer$hant in all respe$ts as tho#h it had been made bet+een them- All a#reements and !rei#ht
arran#ements pre&iosl( made !or the $arria#e o! the #oods are sperseded b( this Bill o! Ladin# and
the $onta$t $ontained or e&iden$ed herein-
T.& B)55 ,- L27)01
The international trade in&ol&in# #oods transport b( sea $oldnFt ha&e been e1isted +ithot the
transport do$ments' the most important o! them bein# the bill o! ladin#- The bill o! ladin# represents
re$o#nition o! the #oods re$ei&ed b( the $arrier and an e&iden$e o! the $ontra$t o! the transport b(
sea' bt mostl( represents a +arehose re$eipt o! the transported #oods- The !irst $hapter KO&er&ie+
on Trade Se$ritiesI is str$tred in three se$tions-
In the !irst se$tion 9.hat are se$ritiesW< there are presented the di!!eren$es bet+een pa(ment
and $redit instrments bet+een $i&il and $ommer$ial proo! o! debts and the $hara$teristi$ !eatres o!
se$rities as +ell as their e&oltion !rom the le#al point o! &ie+- A pa(ment instrment is a
me$hanism assrin# the !l!illment o! a pa(ment obli#ation- A $redit instrment is a me$hanism +hi$h
postpones in time the pa(ment o! a debt' assres the mobilit( o! the $redit and #i&es the opportnit(
to the o+ner to a$"ire a se$rit( in order to assre the debt !l!illment at the de date- Se$rities are
do$ments $onsistin# in $ommer$ial debts +hi$h postpone in time the debt pa(ment and $an
$ir$late easil( bein# ne#otiable- Se$rit( possession is needed to e1er$ise the ri#ht arisin# !rom the
as$ertained $redit operation and to ha&e been in&ested +ith this ri#ht an( other person obtainin# it-
?nli0e the $i&il proo!s o! debts the trade se$rities o! debts present some !eatres arisin# !rom the
ne$essit( o! assrin# the stabilit( o! the $redit' to !a$ilitate the $ir$lation o! these titles and a&oidin#
the displa$ement o! #oods and mone(- Credit se$rities are ne#otiable and' $ir$latin# !rom the le#al
point o! &ie+' b( a simpli!ied pro$edre a&oidin# the !ormalism o! the Cession o! the $i&il la+- I! in the
$i&il la+' the le#al position $an be separated !rom the do$ment +hi$h establishes it' in the $ase o!
the $redit proo!s o! debts there is a $onne$tion bet+een la+ and do$ment so that the la+ $anFt be
pleaded and !l!illed bt onl( b( the person ha&in# a $ertain $onne$tion +ith the do$ment- The
do$ment #i&in# e1pression to $redit proo! o! debt has a $onstitti&e $hara$ter' meanin# the ri#ht it
in$ldes is in$orporated in the title and it doesnFt e1ist +ithot it- Also' the $redit proo!s o! debts are
!ormal' literal and atonomos-
T.& '52++)-)'2(),0 ,- (.& (427& +&':4)()&+ in terms o! $ir$lation and their $ontent is presented in the
se$ond se$tion- The ne#otiable notes ha&e been $reated and ha&e been impro&ed in order to
!a$ilitate debts $ir$lation' bein# de to their !orm an e1$ellent $ir$lation instrment- Their !orm
determines their $ir$lation +a( and !rom this point o! &ie+ +e $an sort them in

N&1,()2$5& $&24&4 0,(&+ '&4()-)'2(&+ (, ,47&4 207 4&1)+(&4&7 0,(&+?
A$$ordin# to the !eatres o! their pro&ision or their $ontent' the $redit proo!s o! debts $an be
sorted in proper proo!s o! debts 9bill o! e1$han#e' promissor( note' $he$0<' +arehose re$eipts 9bills
o! ladin#' +arrant re$eipts and +arehose +arrant< and e"it( interests- There are also a$ts or
do$ments $alled nsitable $redit proo!s o! debts' either b( their aspe$t either their e1ternal
str$tre or b( their $ir$lation +a(' the( ha&e some proper' dero#ator( !eatres +hi$h donFt allo+
them to be $onsidered $redit proo!s o! debts- There are so $alled nsitable titles' the identi!i$ation
do$ments and apparent titles-
The bill o! ladin# has been assimilated #enerall( to the $ommer$ial do$ment' and espe$iall(
to the bill o! e1$han#e- The similitde and distin$tions bet+een the bill o! e1$han#e and the bill o!
ladin# are presented in the last se$tion o! this $hapter- The bill o! e1$han#e $an be transmitted b( a
simple and spe$i!i$ method $alled endorsement +hi$h #i&es atonomos and abstra$t ri#hts'
trans!errin# to the endorser the propert( o! the title +ith all its intrinsi$ ri#hts- The possibilit( o!
endorsin# the bill o! e1$han#e reslts e&en !rom the $hara$ter o! this title +hi$h $an be issed as non
/ trans!erable b( endorsement +ith not to order pro&ision in$lded-- The trans!er modalit( o! the bills
o! ladin# to order is similar to that o! transmittin# the bill o! e1$han#e bt in order to be $onsidered a
title to order to be transmitted b( endorsement it shold in$lde deliberatel( the $lase to order- The
possibilit( o! $ir$lation b( endorsement o! the bill o! ladin# doesnFt assimilate it totall( +ith a real title
to order de!ined mainl( b( its abstra$t !eatre' deta$hed !rom the reason element- So the bill o! ladin#
presents this spe$ial !eatre onl( +hen it is to order- In order to se it' the o+ner o! the bill o! ladin#'
similar to the o+ner o! the bill o! e1$han#e has to identi!( himsel! b( a $ontinos series o!
endorsements-
As a reslt' +hen the bill o! ladin# is to order' the endorsement o! the do$ment !ollo+s the
rles and de&elops the e!!e$ts o! the endorsement o! a $ommer$ial do$ment- The bill o! e1$han#e is
a literal title' meanin# is has &ale e&en b( its presen$e- The bill o! ladin# is also a literal title- Issed
and si#ned b( a $arrier #i&es him the "alit( o! a debtor !or the obli#ations in$lded into the title- Bt'
the bill o! e1$han#e is a $omplete proo! o! debts' meanin# its $ontent $anFt be $ompleted +ith other
do$ments and the si#nator( $an not oppose to the person +ho obtained the bill o! e1$han#e +ith
sole e1$eptions resltin# !orm its $ontent- As re#ards the bill o! ladin#' the sitation is di!!erent'
a$$ordin# to the $onditions o! the transport $ontra$t in$lded totall( or partiall( in it- There!ore' +hen
the bill o! ladin# mentions deliberatel( the $harterin# $ontra$t' other e1$eptions resltin# !rom this one
$an be opposed to the person +ho obtains the ri#ht-
As re#ards bill o! e1$han#e' in $ase that pa(ment at de date is re!sed to the possessor he
has the ri#ht o! re$ess a#ainst an( o! the si#natories nli0e' those +ho endorse a bill o! ladin# and
donFt pled#e themsel&es personall( in !ront o! the ne1t possessor' the( are not #arantors' that
meanin# the le#itimate o+ner o! the bill o! ladin# +old not be able to la( a $laim to an( si#natories
the !l!illment o! the $arrier obli#ation- From the point o! &ie+ o! the $ontent' the bill o! e1$han#e is
in$lded in the $ate#or( o! $ommer$ial do$ments' respe$ti&el( o! those do$ments +hi$h #i&e to the
le#itimate o+ners the ri#ht o! pa(ment o! a $ertain amont o! mone(' e1pressin# in mone( the &ale
the( in$lded- A$$ordin# to its !n$tions the bill o! ladin# belon#s to another $ate#or(' the one o!
+arehose re$eipts' de!ined as do$ments +hi$h #i&e the ri#ht on $ertain #oods lo$ated in $ertain
+arehoses or loaded on board o! the ship +ith the prpose o! transportation and allo+s the ta0in#
o&er o! the ob,e$t mentioned in the title- The ri#ht o! the bill o! e1$han#e holder is totall( atonomos
as $on$erns the !ndamental report- The sitation is di!!erent !or the bill o! Ladin#' +hi$h sall( is a
$asal titleW
T.& B)55 ,- L27)01-5,27)01 $)55 )0'5:7&+ (&0 +&'(),0+ 2+ -,55,8+:
H I0 (.& -)4+( +&'(),0 )+ /4&+&0(&7 (.& .)+(,4)'25 &*,5:(),0 ,- (.& $)55 ,- 527)01- At the
be#innin# o! its e1isten$e the bill o! ladin# represented onl( a re$eipt issed b( the $arrier
9transporter<' not ne#otiable and ma0in# e&iden$e that the #oods it des$ribed in it ha&e been loaded
or ha&e been deli&ered in order to be loaded on a $ertain ship' +ith a $ertain destination- :radall(
the bill o! ladin# has be#n to in$lde also' terms o! the sea transportation $ontra$t' and +hen the
ne$essit( o! le#al me$hanism +as !elt b( +hi$h to be !l!illed order do$ments pon the #oods be!ore
these ones to rea$h the destination' the bill o! ladin# a$"ired the !eatre o! a +arehose re$eipt)
J T.& 4&',10)(),0 ,- (.& $)55 ,- 527)01 )0 (.& 3:0)')/25 528 <+&'(),0 2=?
On the internal le&el the bill o! ladin# is settled b( the Code o! *er$antile La+ and in the
;omanian ni!orm re#lations 9The ?nited Nations Con&ention $on$ernin# the #oods transportation
b( sea' 34I@' 0no+n as Hambr# ;les<-Amon# these there are di!!eren$es in settlement re!errin#
mainl( to the $ontent o! the bill o! ladin# $ontent' reason !or +hi$h this std( is based in the main on
the pro&isions settled b( Hambr# ;les and onl( as $ompletion and to $ompare +e re!er to the
pro&isions in Code o! *er$antile La+ and o! the other international re#lations'
J T.& /24()&+ )0*,5*&7 )0 ',0'5:7)01 (.& $)55 ,- 527)01 <+&'(),0 B=
*eanin# the $arrier' the loader and the re$ipient- A$$ordin# to Hambr# ;les: $arrier is an( person
+hi$h or in +hose name a $ontra$t o! #oods transport b( sea +as $on$lded +ith a loader) loader
means an( person b( +ho or in +hose name or o! +hose athori%ation a $ontra$t o! #oods transport
b( sea +as $on$lded +ith the $arrier) this $ontra$t in$ldes an( person to +hom or on +hose name
or b( his athori%ation the #oods are e!!e$ti&el( deli&ered to the $arrier in $onne$tion +ith the $ontra$t
o! #oods transportation b( sea) re$ipient bein# the entitled person to ta0e the #oods)
J T.& 4,5& 207 (.& )3/,4(20'& ,- (.& $)55 ,- 527)01 -,4 (.& 1,,7+ +&2 (420+/,4( 207 -,4 (.&
)0(&402(),025 (427& )+ $2+&7 ,0 (.& -:0'(),0+ (.)+ ,0& .2+ <+&'(),0 4=
The !irst !n$tion o! the bill o! ladin# is that o! a re$eipt !or the deli&ered #oods' $ontainin# in
the same time also some details abot the "antit( and the "alit( o! the loaded or deli&ered to be
loaded #oods- The bill o! ladin# $anFt $ontine to be onl( a re$eipt to re$o#ni%e the deli&ered #oods-
In this $ase' e&en it $ontains all the details as0ed b( la+) it +oldnFt be able to pro&e totall( the
$onditions o! transport- This is the reason !or +hi$h' o&erlea! the bill o! ladin# there are printed the
#eneral $onditions based on +hi$h the transport +ill be done- Hen$e the se$ond !n$tion o! the bill o!
ladin# meanin# the proo! o! the pre&ios $ontra$t bet+een the $arrier and the loader- An( other
do$ment +hi$h identi!ies eno#h the #oods and +hi$h $ontains the transport $lases and the
$onditions $old !l!ill the !irst t+o !n$tions o! the bill o! ladin#- Instead' this do$ment +old not be
able to represent the #oods onl( as !ar as its transmission +ill be e"i&alent +ith the +rit o!
possession o! the re$ipient b( the mediated +a( o! possessin# the #oods b( the $aptain- As a reslt'
the bill o! ladin# has a m$h more important role' representin# e1a$tl( the #oods to be transported-
The bill o! ladin# represents a ne#otiable note' a $redit proo! representin# the #oods and ha&in# the
role to !a$ilitate the sale or the pled#in# o! the #oods alon# the tra&el' +ithot bein# deli&ered
e!!e$ti&el(-
H T.& 5&125 2+/&'( ,- (.& $)55 ,- 527)01? T.& 824&.,:+& 4&'&)/( B)55 ,- 527)01 ,- (.&
(420+/,4(&7 1,,7+ <+&'(),0 5=?
.ithot den(in# its probation !n$tion' the bill o! ladin# is !ndamentall( a title' it represents the
des$ribed #oods in it' the re#ime o! its trans!er bet+een persons is the $ommon re#ime o! titles' and
the ri#hts arisin# !rom it are literal and atonomos-
J T.& ',0(&0( ,- (.& $)55 ,- 527)01 <+&'(),0 6=
Is determined b( the Le#islation o! di!!erent states' the di!!eren$es bein# rather rare and this de on
one hand to some standard blan0s' and on the other hand to the ni!orm re#lations in the !ield-
A$$ordin# to Hambr# ;les the bill o! ladin# shold $ontain: details abot the #oods) details abot
the &o(a#e 9the loadin# port' the destination port and the identi!i$ation o! the ship ma0in# the
&o(a#e<) the date or the deli&er( term o! the #oods deli&er( in the destination port) details abot the
!rei#ht) a note resltin# o! +hi$h the transport is sbmitted to Hambr# ;les) nmber o! ori#inal
samples) the $arrierFs or his representati&e si#natre-
Beside the obli#ator( notes' the bill o! ladin# $an also $ontain some spe$ial $lases' re!errin#
either to the sitation o! the loaded or ta0en to be loaded #oods 9"antit( and "alit( reser&es<' either
to the +a(s o! transport- The main e!!e$t o! these notes' $alled reser&es is the $han#e o! the bill o!
ladin# !rom a $lean bill o! ladin# in an n$lean bill o! ladin#- Bt !or a loader is an ad&anta#e to #et a
$lean bill o! ladin#' +ithot reser&es' +hi$h +ill pro&e the #oods has been loaded in a #ood $ondition-
Other+ise' the notes mentioned in the bill o! ladin# $an ha&e an in!len$e on its "alit( o! a pa(ment
do$ment- This is the reason !or the $arriers donFt a$$ept notes in the bill o! ladin#) "ite o!ten the
$arrier is as0ed to isse a $lean bill o! ladin# in e1$han#e o! a #arantee- As $on$ernin# the
possibilit( o! issin# the letter o! #arantee' Hambr# ;les stiplate that an( a#reement b( +hi$h
the loader pled#es himsel! to indemni!( the $arrier !or an( loss reslt o! issin# b( the $arrier o! a
$lean bill o! ladin# re#ardin# the notes o! the loader to be in$lded in the bill o! ladin# or re#ardin# the
apparent #oods $ondition is nll and +ithot an( e!!e$ts to an( other third part(' in$ldin# a re$ipient
to +hi$h the bill o! ladin# +as transmitted)
J T;/&+ ,- $)55+ ,- 527)01 <+&'(),0 7=?
The main $lassi!i$ation o! the bills o! ladin# is mentioned in Hambr# ;les +hi$h !rom the
point o! &ie+ o! the person entitled to ta0e the #oods in the destination port settle bet+een
nominati&e' to order and to bearer- From the point o! &ie+ o! #oods deli&er(' the issed bill o! ladin#
$an be loaded on board or a bill o! ladin# bearin# the note re$ei&ed the #oods to be loaded' the
di!!eren$e bein# that the latest donFt pro&e the #oods has been shipped bt onl( has been deli&ered
!or this prpose- The bill o! ladin# issed in e1$han#e o! the loaded #oods shold be a $lean bill o!
ladin#- I! the bill o! ladin# in$ldes notes abot the inade"ate $ondition o! the #oods or o! the
pa$0a#e' the issed bill o! ladin# +old be n$lean) the sitation +old ha&e an in!len$e pon its
"alit( as a pa(ment do$ment-
The #oods $an be transported to the destination on one ship or man( ships ha&in# di!!erent
ship/o+ners or b( &arios means o! transportation o! +hi$h at least one is b( sea- From this point o!
&ie+' the bills o! ladin# $an be: thro#h bills o! ladin#' deli&er( order or bill si#ned nder protest- The
de&elopment o! the sea transport b( $ontainers imposed the ne$essit( o! some $han#es in the
!eatre o! do$ments on a$$ont o! the parti$ipation o! man( $arriers to the transport- ?nder these
$ir$mstan$es the $hosen soltion +as either to isse a thro#h bill o! ladin# or a mltimodal or
$ombined bill o! ladin#' i! the transport spposes to se di!!erent means o! transport- This be$ase
the reason o! the sin# $ontainers is based on door to door transport' dire$tl( !rom the prod$er to
$stomer sin# onl( one transport do$ment- O! $orse' the $ombined transports donFt in$lde
ne$essaril( sin# $ontainers' bt the de&elopment o! $ontainers sa#e in$reased si#ni!i$antl( their
importan$e-
The e1isten$e o! di!!erent $arriers in&ol&es !irst di!!i$lties $on$ernin# the settlement o! the
responsibilities !or losses and dama#es o! the #oods transported in $ontainers- The identi!i$ation o!
the responsible $arrier means to determine the moment +hen the #oods +ere dama#ed- The sa#e
o! $ontainers in$reases this di!!i$lt( be$ase the $ontainers #enerall( are not opened be!ore the
destination- So that' i! the responsibilit( $anFt be lo$ated' it is o!ten $hosen the soltion as e&er(
$arrier in the transport a$ti&it( to $ontribte to indemni!( proportionall( +ith the re$ei&ed sm o!
mone(- The se$ond di!!i$lt( is $onne$ted +ith the transport do$ments the( se- :enerall(' it is
$onsidered not to be sitable to e1ist separate do$ments !or e&er( sta#e o! +hat +e $all a $ombined
transport- I! it +old #o on li0e this' the do$ments issed this +a( $oldnFt ha&e been ne#otiated p
to the
transport !inal sta#e- In this $ase it is $onsidered to be ideal the !irst $arrier +ho si#n and isse the bill
o! ladin# to ans+er !or the +hole operation- This soltion is stiplated in Hambr# ;les +hi$h settle
$arrierFs responsibilit( in$ldin# the sta#e o! transport !l!illed a$tall( b( the $arrier- Also in the sea
pra$ti$e there are also sed standard bills o! ladin# issed b( the international deli&er( $ompanies
FIATA' the line standard bills o! ladin# issed and appro&ed b( BI*CO' the bills o! ladin# sed !or the
#oods transportation in $ontainers' the ele$troni$ bills o! ladin# and hose bills o! ladin#)
H F&8 /4,'&7:425 2+/&'(+ ',0'&40)01 (.& ',0'5:7)01 207 (.& -:5-)553&0( ,- (.& ',0(42'( ,-
1,,7+ (420+/,4( $; +&2 $2+&7 ,0 $)55 ,- 527)01 <+&'(),0 8<
The $orrelation bet+een letter o! $redit and bill o! ladin#- The bill o! ladin#' +arehose re$eipt
represents a pa(ment do$ment' #ettin# this !eatre de to the $lase Kpa(ment do$mentL or
Ka$$eptan$e do$mentL mentioned in the international sale $ontra$t- The letter o! $redit bein# an
independent transa$tion' separated !rom other $ontra$ts is based onl( on do$ments and instr$tions
b( +hi$h it +as initiated- For this reason' the bill o! ladin# as a pa(ment do$ment shold meet
$ertain $onditions re!errin# espe$iall( to the loaded #oods $ondition and its deli&er( term- The
$orrelation bet+een the bill o! ladin# data' #oods deli&er( term time o! &alidit( o! the letter o! $redit- As
a transported #oods +arehose re$eipt' the bill o! ladin# !a$ilitates the sale be$ase the possession
o! the bill o! ladin# means the s(mboli$ possession o! the transported #oods- The transmission o! the
bill o! ladin# is e"i&alent to the transmission o! the sold thin#' so that the seller has the opportnit( to
pretend the pri$e +hen the do$ment +as handed o&er-
The seller needs the bill o! ladin# to ne#otiate it or to transmit it to the b(er thro#h the ban0'
re$ei&in# the e"i&alent &ale o! the sold #oods based on the letter o! $redit- Considerin# the data
and the notes +ritten on the bill o! ladin# are real' the b(er +ill pa( the e"i&alent &ale be!ore
#ettin# the bill o! ladin# that +old be transmitted to him a!ter that b( the ban0 and he +ill pretend the
$aptain to deli&er him the #oods in !ll a$$ord +ith their des$ription in the bill o! ladin#- For this
reason' beside the obli#ator( notes' the bill o! ladin# shold in$lde the date o! e!!e$ti&e end o! the
loadin# o! the #oods mentioned in it and to be issed onl( a!ter the loadin# +as !inished- This note is
important be$ase it $onditions the openin# o! the do$mentar( $redit- In the letter o! $redit there are
al+a(s $onditions $on$ernin# the bill o! ladin# date- The deli&er( term settled b( parties b( the
$ontra$t +ill be !ond in the letter o! $redit as a limit term p to +hi$h the bill o! ladin# $an be handed-
J T.& 4&+/,0+)$)5)(; ,- (.& /24()&+ )0 (.& -:5-)553&0( ,- (.& C,0(42'( ,- 1,,7+ T420+/,4( $2+&7
,0 $)55 ,- 527)01 <+&'(),0 9=?
The international sitation re!errin# to the ni!ormit( o! the rles +hi$h lead the responsibilities
s(stem in #oods transportation based on bills o! ladin# is $omple1- No+' in man( $ontries' the la+
$on$ernin# the responsibilit( $onditions is still represented b( Ha#a ;les and Ha#a/Disb( +hi$h
prote$t mainl( the $arriers interests- As a rea$tion to the la$0 o! balan$e maintained b( these
$on&entions' !a&orin# the $arriers' +ho are' mainl(' !rom the indstriali%ed $ontries' the international
$ommnit( has de$ided to !ind a more e"itable s(stem to share the responsibilit(- These e!!orts
ha&e been materiali%ed in Hambr# ;les +hi$h ha&e settled the $arrierFs responsibilit( is based on
the !alt prin$iple or the presmed ne#li#en$e-
The $arrier ans+ers !or the pre,di$e reslt o! the loss or the dama#e o! the #oods as +ell !or
the dela( in #oods deli&er(- For the loss or !or the dama#e o! the #oods or !or the dela( $ased b( a
!ire' the $arrier +old ans+er i! the $laimant pro&es the !ire reslted as $arrierFs !alt or ne#li#en$e'
o!!i$ials in $har#e or his mandator(- In the sitation o! li&in# animals transport' the $arrierFs
responsibilit( +old be ta0en into $onsideration onl( i! he doesnFt !ollo+ the instr$tions #i&en b( the
loader- The $arrier ans+ers also !or the #oods transported on de$0 +ithot loaders a#reement or
$ontrar( the pra$ti$e o! that tra!!i$- I! the transport +as totall( or partiall( entrsted to other person'
the $arrier +old ans+er also !or the transport sta#e did b( that one- E1$eptin# the sitations o!
$ommon dama#e' the $arrier doesnFt ans+er !or the losses' pre,di$es or deli&er( dela(s resltin#
!rom a$tions o! hman li&es res$e or reasonable a$tions to sa&e #oods on the sea- In all these
sitations the ri#ht to a$t belon#s to the le#itimate o+ner o! the bill o! ladin# +ho +ill ha&e the
obli#ation to annon$e the dama#es' the pre,di$es and the dela(s nder the san$tions settled b(
la+-
The e&alation o! the $ompensations +old be done a$$ordin# to Hambr# ;les- For other
sitations resltin# !rom the international sea transport a$ti&ities not settled in Hambr# ;les' the
responsibilit( o! the $arrier is established a$$ordin# to the international $on&entions or the national
la+s re!errin# to the limitation o! the responsibilities o! the ship/o+ners- As $on$ernin# the
responsibilit( o! other parties in&ol&ed in the !l!illment o! the sea transport $ontra$t based on bill o!
ladin#' Hambr# ;les settle the loaderFs responsibilities !or the pre,di$e the $arrier had to pass
thro#h as +ell as the obli#ations o! this one in the sitation o! dan#eros #oods transport- In this
$ase' the $arrier +ill ha&e the "alit( o! $laimant +ho has the same obli#ation to annon$e in +ritin#
the loader abot the loss or the pre,di$e- As $on$ernin# the re$ipientFs responsibilit( in the
h(pothesis the !rei#ht +old be paid b( this one' in the absen$e o! spe$ial instr$tions in$lded in
Hambr# ;les' +e $onsider appli$able the instr$tions in the ;omanian Code o! *er$antile La+-
An( a$tion re!errin# to #oods transport is lost b( limitation in t+o (ears term' +hate&er the $laimant
+ill be the $arrier or the #oods re$ipient-
H B&(8&&0 (427)(),0 207 3,7&40)(;? A'(:25 (&07&0')&+ ',0'&40)01 (.& B)55 ,- 527)01
)3/4,*&3&0( <+&'(),0 10=?
Traditionall(' the bill o! ladin# has been +ritten on the paper and represented a ne#otiable
title- Its de&elopment as a +arehose re$eipt !or the transported #oods and as a pa(ment do$ment
in the international transa$tions !a$ilitated the international sale- ?nder the a$tal $ir$mstan$es' &er(
o!ten the loader 9$onsi#ner< transports his o+n #oods' so that the bill o! ladin# on +hi$h the traditional
pa(ment me$hanism b( the ban0 letters o! $redit has be#n to loose its tilit(- In the same time the
speed in$rease in the maritime indstr( b( sin# $ontainers and other impro&ement means $on$rs
+ith the in$reasin# o! the dela(s in the ban0 ser&i$es and +ith the a##lomeration o! the post ser&i$es'
and' as a $onse"en$e' an important nmber o! sitations +hen the ship rea$hes the destination
be!ore the transport do$ments- From this point o! &ie+' the s(stem based on bill o! ladin# seems not
to meet an( more the a$tal e1i#en$ies-
This s(stem is reproa$hed to be to slo+ in $omparison +ith the a$tal transport $onditions
be$ase it in&ol&es nmeros mo&ements' si#natres and impediments- The di!!i$lt( o! the s(stem
determines dela(s or' the bill o! ladin# essen$e is the !a$t it rea$hes to the destination be!ore the
#oods arri&al and not in&ersel( as o!ten happens- On the other hand' b( its sa#e modalit(' it
!a$ilitates !rad' this one bein# the pri$e paid b( all the !ormalist s(stems in +hi$h the transa$tions
are red$ed to do$ments- In order to be adapted to the a$tal sitation the pra$ti$e has $reated ne+
transport do$ments +hi$h' +ith $ertain limits $an repla$e the traditional bills o! ladin#' meanin# the
+a(bill and the ele$troni$ bill o! ladin#- The maritime +a(bill represents a re$eipt !or the loaded #oods
and a proo! o! the $ontra$t $on$lded b( the loader and the $arrier' bt it loses the most important
!n$tion o! the bill o! ladin#' the ne#otiabilit(- On the other hand' the de&elopment o! ele$troni$
$ommer$e based on the implementation o! the ele$troni$ data inter$han#e +hi$h has $han#ed the
+a( o! ne#otiatin# and $on$ldin# the $ontra$t at distan$e has raised the problem o! atomation the
bill o! ladin#-
In the maritime indstr(' this s(stem has been de&eloped in order to repla$e the traditional
paper do$ments' espe$iall( the bills o! ladin# +ith ele$troni$ messa#es- This +a( a ne+ t(pe o! bill
o! ladin# appeared' the ele$troni$ bill o! ladin#' the most re$ent bein# Bolero bill o! ladin# +hi$h also
!l!ills the role o! the traditional bill o! ladin#' the ne#otiabilit(- The te$hni$al atomated eno#h
$ompli$ated pro$edre o! the ele$troni$ bills o! ladin# presented in this se$tion pro&es that in the
problem o! the !or#er(' an ele$troni$ bill o! ladin# presents sho+s more se$rit( than a traditional one-
Onl( in the sitation +hen the !or#er $an read the $r(pto#raphi$ $ode' and that !rom the mathemati$al
point o! &ie+ is impossible' $old !or#e the ele$troni$ bill o! ladin#-
A$,:( (.& 528 ',0-5)'( ',0'&40)01 (.& $)55+ ,- 527)01 )0'5:7&+ -,:4 +&'(),0+?
In the !irst se$tion there are presented #eneral aspe$ts $on$ernin# the $on!li$t norm and the
la+s $on!li$ts- The sea transport $ontra$t implies sall( an international aspe$t' so that an( liti#ation
$onne$ted +ith the transported #oods in&ol&es problems abot the stabilit( o! the appli$able la+s-
*ost o! the standard bill o! ladin# !orms in$lde $lases +hi$h desi#nate appli$able la+ and the
$ompetent instan$e to sol&e the possible liti#ation- The +a(s o! establishin# the appli$able la+ in the
absen$e o! s$h $lases' re!errin# to the ;omanian la+ 9La+ 368A3447< and to the ;omanian and
!orei#n ,risprden$e in the !iled are anal(%ed in the se$ond se$tion- The la+ appli$able to the bill o!
ladin# a$$ordin# to the prin$iple le1 &olntatis is the la+ $hosen b( a#reement b( both parties- In the
absen$e o! an e1pli$it $lase' $on$ernin# the la+ appli$able to the $ontra$t' this one +old be lead b(
that le#islation to +hi$h the parties intended to sbmit or' +hen this intention $anFt be ded$ed !rom
the $ir$mstan$es o! the $ase' b( the la+ +ith +hi$h the $ontra$t has the $losest $onne$tions- The
appli$able la+' either is settled b( the $ontra$t parties' or b( the ,d#ment instan$e based on the
sbsidiar( bt obli#ator( $on!li$t norms' it settles the &alidit( $onditions and the e!!e$ts o! the $ontra$t'
the !l!illment o! the obli#ations and the responsibilit( !or not !l!illin# or late or inade"ate or
!l!illment-
As $on$ernin# the ,risdi$tion $ompeten$e' Hambr# ;les' tho#h' nli0e the pre&ios
$on&entions settle the possibilit( o! the parties to $hoose a $ertain instan$e' donFt settle the
!ndamental $onditions o! the ,risdi$tion attribti&e $lase' the +a( in +hi$h the a#reement o! both
parties shold be e1pressed and the ni"e sitation o! the re$ipient' o! that resltin# di!!erent
pra$ti$es in the !ield- As an alternati&e' the parties $an $hose the arbitration +a( to sol&e the possible
liti#ations 9se$tion E<- The arbitration $lase is settled' sall( in the shippin# $ontra$ts and rarel( in
the bills o! ladin#' e1$eptin# the sitation +hen are issed based on the shippin# $ontra$ts- This
$lase is &alid in the relations bet+een the shippin# $ontra$t parties- Instead' i! in the bill o! ladin#
there is no re!eren$e abot the arbitration $lase o! the shippin# $ontra$t this is not opposable the
third parties #ettin# the bill o! ladin#- The ne$essit( o! $orresponden$e o! the national le#islation +ith
the $ommnit( one in the !ield o! #oods sea transports- The sea hi#h+a(s-
The $omple1it( o! transport ser&i$es and their distin$t !eatres imposed spe$ial pro&isions
+hi$h settle at the $ommnit( le&el the opportnit( o! deli&erin# ser&i$es' the !ree a$$ess to the sea
transport mar0et and the pra$ti$es o! pri$es settlement in this !iled- As $on$ernin# the $ommnit(
a$"is and its trans!er' ;omania a#reed Chapter 4' The poli$( in the transport !ield and obli#ed itsel!
to ta0e the ne$essar( measres to be a$tall( established p be!ore be$omin# a member- The
Eropean ?nion poli$( !ollo+s b( de&elopin# the maritime $ommer$e not last to !ind a $ompetiti&e
alternati&e !or the land transport- Ths' it is $onsidered the maritime transport in the $ommnit( and
the ri&er transport are t+o elements +hi$h $ombined $an sol&e the a##lomerated road
and rail+a( str$tre- Their de&elopment is step !or+ard to $reate the sea hi#h+a(s and to o!!er
simple and per!ormin# ser&i$es- ;omania' as a riparian $ontr( and $onne$tion bet+een East and
.est' !tre member o! the Eropean ?nion shold !ollo+ permanentl( the $onditions and the
realities $on$ernin# the international transports not onl( !rom the le#islation point o! &ie+' bt also a
$ontra$t pra$ti$e- Tho#h in present there is a le#islation base $on$ernin# the ele$troni$ $ommer$e'
$ompatible +ith the Eropean one' the bills o! ladin# sed in transa$tions are still the traditional ones
and not the modern ones' the ele$troni$ bills o! ladin#- Pra$ti$all(' there are no reasons not to se
these ne+ !orms o! bills o! ladin# b( the ;omanian tradesmen as lon# as the internal le#islation
allo+s that-
In the #eneral !rame o! the preo$$pations to moderni%e the ;omanian le#islation the
$han#in# o! pro&isions o! the Code o! *er$antile La+ $on$ernin# the transport #enerall( and
espe$iall( to the bill o! ladin# shold be an ob,e$ti&e- On the other hand' similarl( to the $ontries +ith
tradition in the !iled' +hi$h nder the in!len$e o! the international rles ha&e moderni%ed their
le#islation' in$ldin# the maritime $ommer$ial la+ in independent $odes' also in ;omania the pro,e$t
o! the *aritime Code shold not be !ore&er a simple pro,e$t' bt to be adopted' and all the maritime
$ommer$ial la+ spe$i!i$ instittions to be moderni%ed to the a$tal most ad&an$ed standards to be
in$lded in the ne+ *aritime Cod-
L&++,0 10
HAGUE RULES GO!ERNING LA" AND #URISDICTION
93< This Bill o! Ladin# shall ha&e e!!e$t sb,e$t to the pro&isions o! an( le#islation #i&in# e!!e$t
to the Brssels Con&ention !or the in$orporation o! $ertain rles relatin# to Bills o! Ladin# dated 78th
A#st 347E 9+hi$h rles as set ot in the said Con&ention are herein $alled Kthe Ha#e ;lesL< or to
similar e!!e$t +hi$h is $omplsoril( appli$able to the $ontra$t $ontained or e&iden$ed herein
9in$ldin# the Carria#e o! :oods B( Sea A$t 3435 o! the ?nited States o! Ameri$a +here so
appli$able<- .ithot a!!e$tin# the #eneralit( o! the !ore#oin#' this Bill o! Ladin# shall ha&e e!!e$t i!
issed in Astralia sb,e$t to the pro&isions o! the ;les $ontained in S$hedle 3 o! the Carria#e o!
:oods b( Sea A$t 3443 o! Astralia and the Carria#e o! :oods b( Sea ;e#lations 344@ as applied
b( that A$t' and i! issed in Hon# Jon# sb,e$t to the pro&isions o! the Carria#e b( Sea ?nder Bill o!
Ladin# ;les made nder and as applied b( the Carria#e o! :oods b( Sea Ordinan$e o! Hon# Jon#-
97< In per!ormin# the $ontra$t $ontained or e&iden$ed in this Bill o! Ladin# inso!ar as it relates
to the $arria#e o! #oods b( sea +ithin the meanin# o! the Ha#e ;les the Carrier shall be sb,e$t to
the responsibilities and liabilities and entitled to the ri#hts and immnities set !orth in the Ha#e
;les-
93< Sb,e$t to Clase 398<-
9a< This Bill o! Ladin# and the $onta$t $ontained or e&iden$ed herein shall be $onstred
and appl( a$$ordin# to and be #o&erned b( the la+s o! the State o! Di$toria' Astralia) and
9b< No A$tion or pro$eedin# in respe$t o! a dispte or $laim arisin# nder or in
$onne$tion +ith this Bill o! Ladin# or the $ontra$t $ontained or e&iden$ed herein 9in$ldin# a
$laim a#ainst the Carrier !or loss or dama#e to or in $onne$tion +ith :oods< shall be bro#ht
be!ore an( $ort or tribnal e1$ept an Astralia $ort sa&e that the Carrier alone ma( at its
option brin# an( s$h a$tion or pro$eedin# in some other ,risdi$tion-
9E< No pro&ision o! this Bill o! Ladin# shall in an( +a( depri&e the Carrier o! or dero#ate !rom
the ri#hts' immnities or prote$tion' or in$rease the responsibilities or liabilities +hi$h' in the absen$e
o! s$h pro&ision' the Carrier +old ha&e nder la+s made appli$able b( the !ore#oin# pro&isions or
an( other appli$able la+s in an( pla$e +here an( a$tion or pro$eedin# is bro#ht b( or a#ainst the
Carrier in respe$t o! a dispte or $laim arisin# as a!oresaid' or else+here)
98< I! an( pro&ision o! this Bill o! Ladin# be to an( e1tent rep#nant to le#islation hereb( made
appli$able ot other appli$able la+s in !or$e in a pla$e +here an( s$h a$tion or pro$eedin# is bro#ht
that pro&ision shall to the e1tent onl( to +hi$h it is rep#nant to s$h le#islation and not !rther' be
deemed not to !orm part o! this Bill o! Ladin# or the $ontra$t $ontained or e&iden$ed herein' bt in all
other respe$ts this Bill o! Ladin# and s$h $ontra$t shall $ontine in !ll !or$e and e!!e$t-
SUB-CONTRACTORS SUB-AGENTS 207 AGENTS
93< In addition to all other liberties #i&en to the Carrier herender' the Carrier shall be entitled
to sb/$ontra$t on an( terms to an( person 9hereina!ter $alled a Ksb/$ontra$torL< antAor to entrst to
an( ser&ant or a#ent 9in$ldin# and independent $ontra$tor emplo(ed at an( time b( the Carrier< the
+hole or an( part o! the $arria#e $o&ered b( this Bill o! Ladin#' in$ldin# an( loadin#' nloadin#'
storin#' +arehosin#' and handlin# o! :oods andAor an( dties and !n$tions +hatsoe&er in relation
to :oods nderta0en or athorised to be nderta0en b( the Carrier nder the terms hereo! or
other+ise e1pedient in the CarrierFs opinion !or or in $onne$tion +ith the $arr(in# ot o! the $ontra$t
$ontained or e&iden$ed herein-
In Clase E97<' 93<' 9E< and 98< KCarrierFs emplo(eeL means an( person +ho is a sb/
$ontra$tor' ser&ant or a#ent o! the Carrier 9in$ldin# and independent $ontra$tor at an( time
emplo(ed b( the Carrier< and an( ser&ant or a#ent o! an( person and in$ldes' +ithot a!!e$tin# the
#eneralit( o! the !ore#oin#' &er( person to +hom an( part o! the $arria#e $o&ered b( this Bill o! Ladin#
or an( dties or !n$tions are sb/$ontra$ted or entrsted b( the Carrier prsant to this $lase-
97< It is herb( e1pressl( a#reed that no CarrierFs emplo(ee shall in an( $ir$mstan$es
+hatsoe&er be nder an( liabilit( +hatsoe&er to the Shipper' Consi#nee or an( other *er$hant !or
an( loss or dama#e or dela( o! +hatsoe&er 0ind arisin# or resltin# dire$tl( or indire$tl( !rom an( a$t
ne#le$t or de!alt on his part in $onne$tion +ith the :oods or other+ise ho+soe&er in $onne$tion +ith
the $arria#e $o&ered b( this Bill o! Ladin#-
93< .ithot pre,di$e to the #eneralit( o! $lase E97<' e&er( e1$eption' limitation' $ondition and
immnit( o! +hatsoe&er natre appli$able to the Carrier or to +hi$h a Carrier is entitled nder the
pro&isions o! this Bill o! Ladin# shall also be a&ailable and shall e1tend to prote$t e&er( CarrierFs
emplo(ee-
9E< For the prpose o! all o! the pro&isions o! Clase E97< and 93<' the Carrier in ma0in# the
$ontra$t $ontained or e&iden$ed herein is and shall be deemed to be a$tin# as a#ent or trstee on
behal! o! and !or the bene!it o! all persons +ho are or mi#ht be CarrierFs emplo(ees and all s$h
persons shall to this e1tent be or be deemed to be parties to the $ontra$t $ontained or e&iden$ed in
this Bill o! Ladin#-
98< In $onsideration o! the Carrier a$$eptin# the liabilities and responsibilities pro&ided nder
the terms o! this Bill o! Ladin#' ea$h *er$hant hereb( nderta0es to the Carrier to ma0e no $laim o!
an( des$ription a#ainst an( CarrierFs emplo(ee !or or in respe$t o! an( loss o! or dama#e to or in
$onne$tion +ith :oods or an( other loss dama#e or dela( +hatsoe&er +hi$h o$$rs drin# or b(
reason o! an( a$t ne#le$t or de!alt +hatsoe&er on the part o! an( CarrierFs emplo(ee in $onne$tion
+ith the :oods or other+ise ho+soe&er in $onne$tion +ith the $arria#e $o&ered b( this Bill o! Ladin#'
and to indemni!( the Carrier a#ainst and pa( to the Carrier an( amont +hi$h the Carrier ma( pa( to
an( CarrierFs emplo(ee pon demand made pon the Carrier b( that CarrierFs emplo(ee !or
indemnit( a#ainst or reimbrsement o! an( amont re$o&ered b( that *er$hant nder a $laim bro#ht
a#ainst that CarrierFs emplo(ee $ontrar( to the nderta0in# hereinbe!ore $ontained 9+hether or not
the Carrier +as le#all( liable to ma0e s$h pa(ment pon s$h demand bein# made pon it<-
SCOPE OF CARRIAGE AND CARRIERES LIBERTIES
93< :oods ma( be transported andAor !or+arded b( the Carrier !rom the pla$e o! re$eipt to the
pla$e o! deli&er( b( an( rote or rotes +hatsoe&er 9+hether or not the $stomar( or intended or
ad&ertised or shortest rote or rotes< &ia an( pla$e or pla$es +hatsoe&er 9+hether or not in$ldin#
the Port o! Loadin# 9O$ean Dessel< i! that is not the pla$e o! re$eipt' or the Port o! >is$har#e 9O$ean
Dessel< i! that is not the pla$e o! deli&er(<-
An( Dessel or Con&e(an$e ma( at an( time and !or an( reason and +ithot an( noti$e to an(
*er$hant pro$eed and $arr( :oods to and $all and remain !or an( len#th o! time at an( pla$e or
pla$es +hatsoe&er 9+hether in or ot o! the ad&ertised or $stomar( or shortest rote or order and
altho#h in pro$eedin# thereto s$h De ssel or Con&e(an$e ma( pro$eed and $arr( :oods be(ond
the pla$e o! deli&er( or in a dire$tion $ontrar( thereto or ba$0 to the pla$e o! re$eipt or an( other
pla$e< on$e or more o!ten in an( order- An( Dessel ma( be!ore or a!ter pro$eedin# to+ards its
intended destination or port o! dis$har#e ad,st $ompasses and other na&i#ational instrments' dr(
do$0' #o on +a(s or repair (ards' shi!t berths' ta0e !el or stores' embar0 or disembar0 an( person'
$arr( $ontraband' e1plosi&es' mnitions' +arli0e stores' ha%ardos #oods' remain in port' sail +ith or
+ithot pilots' to+ and be to+ed' and sa&e or attempt to sa&e li!e or propert(-
97< .hether arran#ed be!orehand or not' and +ithot limitin# the #eneralit( o! Clase 893<' the
Carrier shall be at libert( +ithot noti$e to an( *er$hant to per!orm the +hole or an( part o! the
$arria#e $o&ered b( this Bill o! Ladin# b( transportin# andAor !or+ardin# the +hole or an( part o! the
:oods at an( time or pla$e b( the intended O$ean Dessel or an( other &essel9s<' $ra!t' li#hter9s<
andAor other means o! +ater transportation andAor an( means o! transportation b( land or air' +hether
o+ned or operated b( the Carrier or others and +hether departin#' arri&in# or s$hedled to depart or
arri&e at an( pla$e be!ore or a!ter the intended O$ean Dessel- The Carrier ma( also at an( time and
!rom time to time +ithot noti$e to an( *er$hant and as ma( be $onsidered b( Carrier in its absolte
dis$retion to be ne$essar( or e1pedient in $onne$tion +ith the $arria#e $o&ered hereb( trans/ship'
land or other+ise nload :oods at an( port or pla$e !or an( prpose and store :oods b( an( means
o! stora#e either on shore or a!loat at an( port or pla$e !or an( prpose-
93< The Carrier shall ha&e libert( to $ompl( +ith an( dire$tions or re$ommendations a s to
loadin#' departre' arri&al rotes' ports o! $all' stoppa#es' dis$har#e' destination' deli&er( or
other+ise ho+soe&er #i&en b( an( person a$tin# or prportin# to a$t +ith the athorit( o! an(
#o&ernment' international or#ani%ation or an( department thereo!' or b( an( $ommittee or person
ha&in#' or prportin# to ha&e' nder the terms o! an( insran$e on a Dessel or Con&e(an$e the ri#ht
to #i&e s$h dire$tions or re$ommendations-
9E< An(thin# done or o$$rrin# +ithin the terms o! ri#hts' po+ers and liberties pro&ided in
Clase 893<' 97<' 93< 9+hi$h ri#hts' po+ers and liberties shall not be deemed to be restri$ted b( an(
pro&ision appearin# else+here in this Bill o! Ladin# or b( an( other matters or $ir$mstan$es
+hatsoe&er< and an( dela( arisin# there !rom shall be deemed to !orm part o! the $arria#e $o&ered b(
this Bill o! Ladin# and shall not $onstitte a de&iation or other+ise render the Carrier liable !or an(
resltin# loss or dama#e s!!ered b( an( *er$hant or other person-
ALTERNATI!E DISCHARGE
93< I! b( reason o! or in $omplian$e +ith' an( dire$tions or re$ommendations as a!oresaid in
Clase 893< a Dessel or Con&e(an$e does not pro$eed to an( port or pla$e to +hi$h it +as ori#inall(
intended to pro$eed the Dessel or Con&e(an$e ma( pro$eed to an( other port or pla$e +hi$h the
Carrier or the *aster o! the Dessel or person in $har#e o! the Con&e(an$e at its or his dis$retion ma(
sele$t and there dis$har#e the :oods-
97< I! in the opinion o! the Carrier or *aster o! a &essel or person in $har#e o! a Con&e(an$e
the per!orman$e o! the $arria#e $o&ered hereb( or an( &o(a#e or ,orne( nderta0en or proposed to
be nderta0en in !rtheran$e thereo! is or threatens to be nsa!e' nla+!l' impra$ti$able or
inad&isable b( the imminen$e or e1isten$e o! +ar' +arli0e operations or hostilities' or san$tions
imposed b( or a#ainst an( :o&ernment or State or $essation or prohibition o! inter$orse $ommer$ial
or other+ise bet+een an( nations' Container9s< ma( be de&anned andAor :oods ma( be dis$har#ed
at an( port or pl a$e +hatsoe&er 9in$ldin# the port or pla$e o! loadin# o! s$h Dessel or
Con&e(an$e< at the dis$retion o! the Carrier or o! s$h *aster or person' at the ris0 o! the *er$hant-
93< I! on a$$ont o! a$tal or threatenin# epidemi$s' blo$0ade' "arantine' i$e' riots' stri0es'
lo$0ots' labor trobles' interdi$t' port $on#estion' $i&il $ommotions' di!!i$lties in loadin# or
dis$har#e' need o! repair o! a Dessel or disabilit( andAor nsea+orthiness o! a Dessel' or an( other
$ase or e&ent +hatsoe&er' the Carrier or the *aster at an( time is in dobt as to +hether s$h
Dessel $an sa!el( and +ithot dela( or detention' rea$h' enter or lea&e' its intended port o! loadin# or
rea$h or enter its intended destination or port o! dis$har#e or there dis$har#e in the sal manner' or
pro$eed then$e on its intended &o(a#e sa!el( or +ithot dela( or detention' Container9s< ma( be
de&anned andAor :oods ma( be dis$har#ed at s$h DesselFs intended port o! loadin# or at other port
or pla$e dis$retion' at the ris0 o! the *er$hant-
9E< In an( e&ents re!erred to in Clases 593<' 97< and 93< the Carrier ma( retain the :oods at
the port or pla$e at +hi$h the( are dis$har#ed and postpone the $arria#e o! the +hole or an( part
thereo! herender ntil some later date- .hilst :oods are so retained the( shall be entirel( at the
*er$hantFs ris0 and the Carrier shall not be responsible !or them in an( +a(-
98< The $arrier shall be entitled to reasonable e1tra $ompensation in the e&ent o! di&ersion'
dela( or detention o! a &essel $arr(in# :oods nder an( o! the $ir$mstan$es hereinbe!ore pro&ided'
and in respe$t o! dis$har#e andAor retention o! :oods as hereinbe!ore pro&ided and an( ser&i$es
rendered thereto drin# or in $onne$tion +ith an( s$h di&ersion' dela(' detention' dis$har#e andAor
retention' and shall ha&e a lien on s$h :oods !or s$h $ompensation- In addition the Carrier ma('
pon :oods bein# dis$har#ed as hereinbe!ore pro&ided or at time therea!ter' ele$t +ithot noti$e to
an( *er$hant to treat the $ontra$t $ontained or e&iden$ed herein as at an end' +herepon the port or
pla$e at +hi$h s$h :oods ha&e been dis$har#ed or are sitated +hen s$h ele$tion is made shall
be deemed to be the pla$e o! deli&er( and the *er$hant shall ta0e deli&er( o! s$h :oods thereat
and pa( all additional $osts and e1penses o! s$h deli&er( and all o! the CarrierFs obli#ations and
responsibilities in respe$t o! s$h :oods shall be dis$har#ed pon the Carrier ma0in# s$h ele$tion
and deli&er( or ma0in# s$h :oods a&ailable !or deli&er( at s$h port or pla$e as !oresaid-
In the e&ent that a!ter ma0in# s$h ele$tion the Carrier ma0es arran#ements to store an( o!
the :oods at andAor trans/ship andAor !or+ard an( thereo! to the pla$e o! deli&er( or the Port o!
>is$har#e 9O$ean Dessel<' it shall do so as a#ent onl( !or and at the sole ris0 o! the *er$hants
+ithot an( liabilit( +hatsoe&er in respe$t o! s$h a#en$( and ea$h *er$hant shall be liable to
re$ompense the Carrier !orth+ith pon demand !or all e1tra !rei#ht $har#es and e1tra e1penses
thereb( in$rred-
MISLAID GOODS
In $ase :oods $annot be !ond at the pla$e o! deli&er( or i! the( be mis /$arried' the(' +hen
!ond' ma( be !or+arded to the pla$e o! deli&er( at the CarrierFs e1pense bt the Carrier shall not be
responsible !or an( loss' dela(' depre$iation or dama#e arisin# !rom s$h mis /$arria#e andAor
!or+ardin#-
CARRIERES RESPONSIBILITY
93< The Carrier is not a $ommon $arrier and reser&es the ri#ht to a$$ept or re!se arti$les !or
$arria#e in its sole dis$retion-
97< E1$ept as other+ise pro&ided herein' the CarrierFs responsibilit( !or :oods shall $ommen$e
at the time +hen s$h :oods are re$ei&ed b( the Carrier at the sea terminal at the Port o! Loadin#
and shall terminate +hen s$h :oods are deli&ered b( or on behal! o! the Carrier in a$$ordan$e +ith
Arti$le 34 at the intended Port o! >is$har#e-
93< Not+ithstandin# the pre$edin# para#raph' +here the spa$e9s< entitled KPla$e o! re$eiptL
andAor KPla$e o! deli&er(L on the !a$e hereo! are $ompleted the $ontra$t $ontained in or e&iden$ed b(
this Bill o! Ladin# is !or thro#h transportation !rom andAor to the pla$e9s< so named and the CarrierFs
responsibilit( shall then $ommen$e at the time +hen the :oods are re$ei&ed at the Pla$e o! re$eipt
so named 9i! an(< andAor terminate +hen the :oods are deli&ered in a$$ordan$e +ith Arti$le 34 at the
Pla$e o! deli&er( so named 9i! an(<-
9E< The Carrier shall not nder an( $ir$mstan$es be liable !or loss or dama#e arisin# or
resltin# !rom !ire' nless $ased b( the a$tal !alt or pri&ities o! the Carrier' A$t o! :od' a$t o! +ar'
a$t o! pbli$ enemies' arrest or restraint o! prin$es rlers or people or sei%re nder le#al pro$ess'
"arantine restri$tions' a$t or omission o! a *er$hant or the a#ent or representati&e o! a *er$hant'
stri0es or lo$0/ots or stoppa#e or restraint o! labor !rom +hate&er $ase' +hether partial or #eneral'
riot and $i&il $ommotions' sa&in# or attemptin# to sa&e li!e or propert(' +asta#e in bl0 or +ei#ht or
an( other loss or dama#e arisin# !rom inherent de!e$t' "alit( or &i$e o! #oods' ins!!i$ient pa$0in#'
ins!!i$ien$( or inade"a$( o! mar0s' latent de!e$ts in an( &essel' &ehi$le' $on&e(an$e' $ontainer'
$ar#o $arr(in# e"ipment or other plant or e"ipment' terminal' store or premises +hatsoe&er' not
dis$o&erable b( de dili#en$e- The Carrier shall not be responsible !or an( dire$t or indire$t loss or
dama#e' +hi$h is $ased thro#h dela(-
98< Sb,e$t to para#raph 9E< abo&e' the Carrier shall be liable !or loss or dama#e o! +hatsoe&er
natre and ho+soe&er arisin# to the e1tent !ollo+in# bt no !rther:
9i< ?pon proo! that the loss or dama#e arose ot o! a part o! a part o! the $arria#e $o&ered b( this Bill
o! Ladin#' +hi$h is sb,e$t to the Ha#e ;les' in +hi$h $ase the Ha#e ;les shall appl(' or
9ii< ?pon proo! that loss or dama#e to :oods not !allin# +ithin 9i< abo&e' arose ot o! the handlin# or
$arria#e o! the :oods b( a sb/$ontra$tor or a#ent o! the Carrier in +hi$h $ase the liabilit( o! the
Carrier shall be limited to that amont at the time o! s$h proo! re$o&erable b( the Carrier !rom the
sb/$ontra$tor or a#ent in respe$t o! s$h loss or dama#e' pro&ided that i! s$h loss or dama#e to
:oods is pro&ed to ha&e arisen in the $orse o! inland transportation b( the sb$ontra$tor or a#ent'
the Carrier shall not in an( e&ent ha&e an( #reater liabilit( to an( *er$hant9s< than that +hi$h s$h
sb/$ontra$tor or a#ent +old ha&e had i! it had made a separate and dire$t $ontra$t +ith s$h
*er$hant9s< in respe$t o! s$h inland transportation' e1$ept that i! an( part o! s$h inland
transportation is b( +ater' the liabilit( o! the Carrier in respe$t thereo! shall be in a$$ordan$e +ith the
Ha#e ;les' or
9iii< in $ase o! an( loss or dama#e to :oods not !allin# +ithin 9i< or 9ii< abo&e in +hi$h $ase the loss or
dama#e shall be deemed to ha&e arisen at sea and the Carrier shall be responsible a$$ordin# to the
Ha#e ;les-
CONTAINER PACAED BY MERCHANT
93< .here an( :oods are re$ei&ed b( the Carrier in or on an( Container9s<' the $ontra$t
$ontained or e&iden$ed herein' so !ar as it relates thereto' is and shall be deemed to be !or the
$arria#e o! s$h Container9s< and the $ontents thereo! and the !ollo+in# pro&isions o! this Condition
shall appl(-
97< The a$0no+led#ment o! re$eipt b( the Carrier o n the !ront hereo! is $on!ined to the nmber
and apparent order and $ondition o! the Container9s< re$ei&ed' and an( statements on this Bill o!
Ladin# relatin# to mar0s and nmbers' nmber and 0ind o! pa$0a#es or pie$es' des$ription' "antit('
$ondition' +ei#ht' measre' natre' 0ind' &ale or other parti$lars o! the Container9s< are as
!rnished b( the Shipper and are n0no+n to the Carrier and the Carrier a$$epts no liabilit( in respe$t
thereo!- Ea$h *er$hant shall be deemed to ha&e +arranted to the Carrier the a$$ra$( o! those
parti$lars and nderta0es to indemni!( the Carrier on demand a#ainst all loss' dama#e' e1penses'
penalties and !ines arisin# or resltin# !rom an( ina$$ra$( thereo!-
93< Ea$h *er$hant a$$epts $omplete responsibilit( !or the pa$0in# and st!!in# o! the $ontents
o! the Container9s<' the $losin# and sealin# thereo! and the !itness o! the Container9s< and the
$ontents thereo! !or $arria#e in a$$ordan$e +ith the terms o! this Bill o! Ladin# in$ldin# Condition 33-
Ea$h *er$hant shall be liable and hereb( nderta0es to indemni!( the Carrier a#ainst an( 0ind o!
loss' dama#e' e1penses' liabilities' penalties and !ines dire$tl( or indire$tl( s!!ered b( the Carrier
arisin# !rom an( improper or inade"ate pa$0in#' st!!in#' $losin# or sealin# or n!itness o! the
Container9s< or the $ontents thereo!-
9E< The Carrier shall be entitled 9bt nder no obli#ation< to open an( o! the Container9s< and
to inspe$t the $ontents or an( part thereo! +ithot noti$e and at an( time or pla$e-
98< Ea$h Container shall be properl( sealed and the seal identi!i$ation re!eren$e as +ell as the
Container re!eren$e shall be sho+n herein' in $ase the seal o! an( Container is bro0en b( the
$stoms or other athorities !or inspe$tion o! s$h Container or the $ontents or part thereo!' the
Carrier shall not be liable !or an( loss or dama#e or an( other $onse"en$es arisin# or resltin# there
!rom-
CONTAINER PACAED BY CARRIER
93< .here :oods are re$ei&ed b( the Carrier not in or on an( Container9s< the !ollo+in#
pro&isions o! this Condition appl(-
97< The Carrier shall be at libert( to pa$0 and transport andAor !or+ard the :oods in or on an(
Container9s<-
93< An( statements on this Bill o! Ladin# relatin# to mar0s' nmbers' des$ription' "antit('
"alit(' +ei#ht' measre' natre' 0ind' &ale or other parti$lars o! the :oods are as !rnished b( the
Shipper and are n0no+n to the Carrier and the Carrier a$$epts no liabilit( in respe$t thereo!- Ea$h
*er$hant shall be deemed to ha&e +arranted to the Carrier the a$$ra$( o! those parti$lars and
shall indemni!( the Carrier a#ainst all loss' dama#e' e1penses' penalties and !ines arisin# and
resltin# !rom ina$$ra$( thereo!-
CARRIERES CONTAINERS
93< The Shipper shall inspe$t Container9s<' +hi$h are lent' leased or ho+soe&er other+ise
!rnished b( or on behal! o! the Carrier be!ore pa$0in# :oods into or onto them' and an( s$h
Container9s< pa$0ed b( the Shipper shall be deemed to ha&e been a$$epted b( the Shipper as bein#
in sond and sitable $ondition !or the prpose o! the $arria#e $o&ered b( this Bill o! Ladin# and no
*er$hant shall ha&e an( ri#hts +hatsoe&er a#ainst the Carrier !or or in respe$t o! an( loss o! or
dama#e to :oods de to ins!!i$ient or nsond $ondition o! Container9s< ho+soe&er arisin#-
97< Ea$h *er$hant shall assme !ll responsibilit( and indemni!( the Carrier !or an( loss o! or
dama#e to an( Container or other e"ipment !rnished b( or on behal! o! the Carrier +hi$h o$$rs
+hile s$h Container or e"ipment is in the possession o! an( ser&ant9s< or a#ent9s< o! or inland
$arrier9s< en#a#ed b( or on behal! o! an( *er$hant-
93< The Carrier shall not in an( e&ent be liable !or and ea$h *er$hant shall be se&erall( liable
to indemni!( and hold the Carrier harmless !rom and a#ainst an( loss o! or dama#e to propert( o!
other persons or in,ries to other persons $ased b( Container9s< !rnished b( or on behal! o! the
Carrier or $ontents thereo! drin# handlin# b( or +hile in the se or possession o! an( *er$hant or
an( ser&ant9s< or a#ent9s< o! or inland $arrier9s< en#a#ed b( or on behal! o! an( *er$hant-
9E< .here :oods are deli&ered in Container9s<' +hi$h the Carrier o+ns or to the possession o!
+hi$h the Carrier is other+ise entitled the *er$hant ta0in# deli&er( shall retrn s$h Container9s<
promptl(-
SPECIAL CONTAINERS
93< The Carrier shall not nderta0e to $arr( :oods in re!ri#erated' inslated' &entilated and
other spe$ial Container9s< 9hereina!ter $alled Kspe$ial ContainersL< and all :oods 9in$ldin# :oods
re$ei&ed in spe$ial Containers pa$0ed b( or on behal! o! the Shipper< shall be treated and $arried as
ordinar( :oods' nless spe$ial arran#ements !or the $arria#e o! those :oods as spe$ial $ar#o ha&e
been pre&iosl( a#reed to bet+een the Carrier and the *er$hant and the CarrierFs nderta0in# to
$arr( the said :oods as spe$ial $ar#o is stated on the !a$e hereo! and e1tra !rei#ht as re"ired b( the
Carrier has been paid-
97< .here the Carrier a#rees to the $arria#e o! :oods as spe$ial $ar#o and the Shipper
re"ests a parti$lar temperatre ran#e and it is a$$epted b( the Carrier' the Carrier +ill i! re"ested
b( the Shipper to do so' set thermostati$ $ontrols +ithin the re"ested temperatre ran#e' bt the
Carrier does not nderta0e that s$h temperatre +ill be maintained +ithin the spe$ial Container9s<
and shall not be liable !or an( loss or dama#e to or in $onne$tion +ith :oods resltin# !rom !ailre to
$arr( :oods at the re"ested temperatre ran#e-
93< .here the Carrier a#rees to the $arria#e o! :oods as spe$ial $ar#o' all o! the
pro&isions o! this Bill o! Ladin# shall $ontine to appl( and ha&e !ll e!!e$t +ith respe$t to s$h
$arria#e e1$ept onl( to the e1tent that the $ontrar( is spe$i!i$all( pro&ided in the spe$ial
arran#ements a#reed as a!oresaid and s$h $ontrar( pro&ision is e1pressl( stated on the !a$e hereo!-
STO"AGE DECA CARGO LI!E ANIMALS
93< ?nless prior to or at the time o! boo0in# the :oods the Carrier re$ei&es a +ritten instr$tion
!rom the Shipper to $arr( :oods belo+ de$0' the Carrier has the ri#ht to sto+ and $arr( :oods nder
this Bill o! Ladin# on or abo&e de$0 o! an( Dessel-
97< .hen :oods are or are intended b( the Carrier to $arried on or abo&e de$0 o! an( &essel
the Carrier shall not be re"ired to note' mar0 or stamp hereon an( statement o! Kon de$0 $arria#eL'
an( $stom to the $ontrar( not+ithstandin#- .hen :oods not bein# li&e animals are $arried on de$0
and this Bill o! Ladin# $ontains no note' mar0 or stamp statin# s$h Kon de$0 $arria#eL' s$h :oods
shall be deemed to be sto+ed nder de$0 !or all prposes in$ldin# #eneral a&era#e' and the Ha#e
;les and le#islation appli$able as pro&ided in Condition 3 hereo! shall appl( a$$ordin#l(-
93< The Carrier shall not nder an( $ir$mstan$es be liable in an( $apa$it( +hatsoe&er !or an(
non/deli&er(' mi s/deli&er(' loss' dela( or dama#e o! +hatsoe&er natre arisin# ho+soe&er to or in
$onne$tion +ith :oods $arried on or abo&e de$0 on an( Dessel and herein stated to be so $arried'
sb,e$t to an( le#islation appli$able as pro&ided in Condition 3 hereo!-
9E< An( li&e animals re$ei&ed b( the Carrier herender shall remain at all times at the sole ris0
o! the *er$hants' and ma( be $arried on abo&e or nder de$0 as the Carrier determines' and the
Carrier shall not nder an( $ir$mstan$es be liable in an( $apa$it( !or an( non/deli&er(' mis/deli&er('
loss' dela( or dama#e o! +hatsoe&er natre arisin# ho+soe&er to or in $onne$tion +ith s$h li&e
animals-
DANGEROUS GOODS AND CONTRABAND
:oods o! an in!lammable' e1plosi&e' radioa$ti&e' $orrosi&e' dama#in#' no1ios' ha%ardos'
poisonos' in,rios or dan#eros natre mst not be tendered !or $arria#e Herender nless +ritten
noti$e o! their natre' name' label' $lassi!i$ation and the method o! renderin# s$h :oods inno$os'
+ith the names and addresses o! the Shipper and Consi#nee' has been pre&iosl( #i&en to the
Carrier and the natre o! the :oods is distin$tl( mar0ed on the otside o! the Container9s<'
pa$0a#e9s< or pie$e9s< as re"ired b( appli$able stattes or re#lations- E&er( s$h noti$e shall bear
the $erti!i$ate re"ired b( appli$able stattes or re#lations to $erti!( that the :oods are properl(
des$ribed' pa$0ed and mar0ed' and in proper $ondition !or transportation a$$ordin# to the re#lations
pres$ribed b( the $ompetent athorit(- I! an( :oods tendered !or $arria#e +ithot pre&ios +ritten
de$laration and arran#ement are or at an( time be$ome o! the abo&e mentioned natre or are or
be$ome $ontraband or prohibited b( an( la+ or re#lations o! an( pla$e or port o! loadin#' dis$har#e
or $all drin# transit' +hether an( *er$hant is a+are thereo! or not' s$h :oods' pon dis$o&er( o!
their natre or at an( time therea!ter' ma( be rendered inno$os' thro+n o&erboard or dis$har#ed or
le!t at an( port or pla$e' or be other+ise srrendered or disposed o! at the dis$retion o! the Carrier or
o! the *aster o! the Dessel or person in $har#e o! the Con&e(an$e +ithot an( liabilit( atta$hin#
hereto and +ithot pre,di$e to the CarrierFs ri#ht to !rei#ht and an( other $har#es pa(able herender-
The !ore#oin# pro&isions shall also appl( to an( s$h :oods tendered !or $arria#e +ith s$h
pre&ios de$laration and arran#ement and +hi$h in the opinion o! the Carrier or an( ser&ant' a#ent or
sb/$ontra$tor o! the Carrier ha&e or are li0el( to be$ome dan#eros to the Carrier' or an( Dessel'
Con&e(an$e' or $ar#o or propert( or person- Ea$h *er$hant shall be separatel( liable to indemni!(
the Carrier a#ainst an( 0ind o! loss' dama#e' e1penses' !ines or liabilit( dire$tl( or indire$tl( in$rred
b( the Carrier +hi$h ma( be $ased b( or reslt !rom s$h :oods or arisin# ot o! the same bein#
tendered- The Carrier reser&es the ri#ht bt shall ha&e no obli#ation' to de&an Container9s< in +hi$h
an( s$h :oods ha&e been pa$0ed b( or on behal! o! a *er$hant and e1amine the $ontents thereo!
and arran#e !or re/sto+a#e' re$oopera#e or re$onditionin# at the dis$retion o! the Carrier or an(
*aster or person in $har#e as a!oresaid bt at the *er$hantsF ris0 and e1pense-
!ALUABLE GOODS
The Carrier shall not be liable to an( e1tent !or an( loss o! or dama#e ho+soe&er arisin# to or
in $onne$tion +ith platinm' #old' sil&er' ,e+eller(' radioisotopes' pre$ios metals' pre$ios stones'
pre$ios $hemi$als' bllion' spe$ie' $rren$(' se$rities' ne#otiable instrments' +ritin#s' do$ments'
pi$tres' embroideries' +or0s o! art' $rios' heirlooms' $olle$tion o! &er( natre or an( other &alable
:oods +hatsoe&er in$ldin# #oods ha&in# parti$lar &ale onl( !or the *er$hant' nless the tre
natre and &ale thereo! ha&e been de$lared in +ritin# b( a *er$hant be!ore re$eipt o! the :oods
herender b( the Carrier and inserted in this Bill o! Ladin#' and nless ad/&alorem !rei#ht has been
!ll( prepaid thereon-
GENERAL A!ERAGE NE" #ASON CLAUSE
In respe$t o! an( part or parts o! the $arria#e $o&ered b( this Bill o! Ladin# +hi$h are or ma(
be intended b( the Carrier to be per!ormed b( sea on board an( Dessel #eneral a&era#e shall be
ad,sted' stated and settled in *elborne' Astralia' or an( other port or pla$e at the CarrierFs option'
a$$ordin# to the Yor0/Ant+erp ;les 34IE as amended' and as to matters not pro&ided !or b( those
;les a$$ordin# to la+s and sa#e o! the port or pla$e o! ad,stment' and in the $rren$( sele$ted b(
the Carrier- The #eneral a&era#e statement shall be prepared b( the ad,sters appointed b( the
Carrier- A&era#e a#reement or bond and s$h $ash deposit as the Carrier ma( deem s!!i$ient to
$o&er the estimated $ontribtion o! the :oods' and an( sal&a#e and spe$ial $har#es thereon' and an(
other additional se$rities as the Carrier ma( re"ire shall be !rnished to the Carrier b( the *er$hant
to +hom :oods are to be deli&ered herender be!ore deli&er( thereo! is made to s$h *er$hant b(
the Carrier- In the e&ent o! a$$ident' dan#er' dama#e or disaster' be!ore or a!ter $ommen$ement o! a
&o(a#e' resltin# !rom an( $ase +hatsoe&er' +hether de to ne#li#en$e or not' !or +hi$h or !or the
$onse"en$e o! +hi$h the Carrier is not responsible b( statte' $ontra$t or other+ise' the :oods and
the o+ners thereo! shall $ontribte +ith the Carrier in #eneral a&era#e to the pa(ment o! an(
sa$ri!i$e' losses or e1penses o! a #eneral a&era#e natre that ma( be made or in$rred and shall pa(
sal&a#e and spe$ial $har#es in$rred in respe$t o! the :oods-
I! a sal&in# ship is o+ned or operated b( the Carrier' sal&a#e shall be paid !or as !ll( and in
the same manner as i! s$h sal&in# ship or ships belon#ed to stran#ers- Ea$h *er$hant shall be
separatel( liable !or the +hole o! the $ontribtion o! the :oods and the o+ners thereo! nder the
!ore#oin# pro&isions-
BOTH TO BLAME COLLISION
I! a Dessel $omes into $ollision or $onta$t +ith another ship as a reslt o! the ne#li#en$e o! the
other ship' and an( a$t' ne#le$t or de!alt o! the *aster' mariner' pilot or the ser&ants o! the Carrier or
o! the o+ner o! the Dessel in the na&i#ation or in the mana#ement o! the &essel ea$h *er$hant +ill be
separatel( liable to pa( to the Carrier or .here the Carrier is not the o+ner o! the Dessel' to pa( to
the Carrier 9as trstee !or itsel! and the o+ners or demise $harterer o! the Dessel< a sm s!!i$ient to
indemni!( the Carrier and the o+ners or demise $harterer o! the Dessel a#ainst all loss or liabilit(
in$rred dire$tl( or indire$tl( b( the Carrier the Dessel andAor the o+ner or demise
$harterer thereo! to the other or non/$arr(in# ship or her o+ners inso!ar as s$h loss or liabilit(
represents loss o! or dama#e to or an( $laim +hatsoe&er o! an( *er$hant paid or pa(able b( the
other non/$arr(in# ship or her o+ners to s$h last mentioned *er$hant and set/o!!' re$oped or
re$o&ered b( the other or non/$arr(in# ship or her o+ners as part o! an( $laim b( them a#ainst the
Carrier or the Dessel or o+ners or demise $harterer thereo!- The !ore#oin# pro&isions shall also appl(
+here the o+ners' operators or those in $har#e o! an( ship or ships or ob,e$ts other than' or in
addition to' the $ollidin# ships or ob,e$ts are at !alt in respe$t o! a $ollision or $ontra$t-
MARAS S"EEPINGS AND SEPARATION
Ea$h Container' pa$0a#e' pie$e or nit $omprised in the :oods shall be $learl( and drabl(
mar0ed or stamped in letters and nmbers not less than !i&e $entimeters hi#h' to#ether the name o!
the Port o! >is$har#e 9O$ean Dessel< and s$h mar0s shall $orrespond +ith the parti$lars appearin#
on the !ront o! this Bill o! Ladin# and shall also in all respe$ts $ompl( +ith the la+s and re#lations in
!or$e at either the port or the pla$e o! deli&er(- Other+ise the Carrier shall not be liable !or dela( in or
!ailre o! deli&er( in a$$ordan$e +ith mar0s- In no $ir$mstan$es +ill the Carrier a$$ept responsibilit(
!or deli&er( in a$$ordan$e +ith other than leadin# mar0s-
All #oods and $ar#o +hi$h $annot be identi!ied as to leadin# mar0s' #oods ot o! or separated
!rom their Containers or pa$0a#es' $ar#o s+eepin#s' li"id reside and an( n$laimed #oods and
$ar#o not other+ise a$$onted !or sale be allo$ated !or $ompletin# deli&er( to the &arios $onsi#nees
and deli&eries o! #oods and $ar#o o! li0e $hara$ter- In proportion to an( apparent shorta#e loss o!
+ei#ht or dama#e and s$h #oods and $ar#o or parts thereo! shall be a$$epted as #ood deli&er(-
Loss o! or dama#e to :oods in bl0 +ithot separation !rom other #oods or $ar#o in bl0 o! li0e
"alit(' shipped b( either the same or another *er$hant' shall be di&ided in proportion amon# the
se&eral shipments- I! an( ba##ed or baled :oods are dis$har#ed sla$0 or torn the *er$hant to +hom
deli&er( is made shall a$$ept his proportion o! the s+eepin#s- The Carrier shall not be responsible !or
loss o! +ei#ht in ba#s or bales torn' mended or +ith holes-
NOTIFICATION AND DELI!ERY
93< The Carrier shall ha&e a ri#ht to deli&er :oods at an( time !rom a DesselFs side'
Con&e(an$e' $ra!t' $stom/hose' +arehose' +har!' "a( or other pla$e or point desi#nated b( the
Carrier at or in the &i$init( o! the pla$e o! deli&er(-
97< An( mention herein o! parties to be noti!ied o! the arri&al o! :oods is solel( !or in!ormation
o! the Carrier and !ailre to #i&e s$h noti!i$ation shall not in&ol&e the Carrier in an( liabilit( nor
relie&e an( *er$hant o! an( obli#ation herender-
93< >eli&er( o! :oods to a holder o! this Bill o! Ladin# dl( presentin# the same or another
person assmin# or entitled to possession o! s$h :oods or this Bill o! Ladin# or to an a#ent' ser&ant'
inland $arrier or other desi#nee o! s$h holder or other person at the CarrierFs terminal or else+here
desi#nated b( the Carrier at or in the &i$init( o! the pla$e o! deli&er( as pro&ided in Clase 3493< shall
$onstitte $omplete and !inal dis$har#e o! the CarrierFs obli#ations here irresponsibilit( !or and in
respe$t o! s$h :oods shall therepon $ease entirel(-
9E< I! :oods are deli&ered to or ta0en into $stod( o! $stoms or other #o&ernment o!!i$ials'
s$h a$tion shall $onstitte $omplete and !inal dis$har#e o! the CarrierFs obli#ations here nder-
98< I! :oods are not $laimed immediatel( pon bein# made a&ailable b( the Carrier at the
pla$e at +hi$h the( are to be deli&ered herender' the Carrier shall not therea!ter ha&e an( !rther
responsibilities or liabilit( in respe$t o! those :oods- Ho+e&er' the Carrier shall be entitled to re$o&er
!rom the *er$hant all stora#e $har#es be$omin# de nder the CarrierFs appli$able tari!! in respe$t o!
an( time !or +hi$h s$h :oods ma( be held b( the Carrier at s$h pla$e !or deli&er( and shall also be
entitled at its absolte dis$retion' and sb,e$t to the CarrierFs lien' to store' sell b( pbli$ a$tion or
pri&ate treat(' abandon' or other+ise dispose o! or deal +ith s$h :oods as it thin0s !it at the sole ris0
at all times o! the *er$hant9s< o+nin# andAor entitled to possession o! s$h :oods- I! an( s$h :oods
are deli&ered into store' stora#e $osts shall be to the *er$hantFs a$$ont and the Carrier shall be
nder no liabilit( there!ore bt the Carrier shall be entitled to re$o&er !rom an( *er$hant on demand
an( $osts o! s$h stora#e +hi$h it ma( ele$t to pa( on the *er$hantFs behal!-
95< I! :oods ha&e been pa$0ed or sto+ed into Container9s< b( an( *er$hant9s< or an( a#ent9s<
ser&ant9s< or $onsolidator9s< or inland $arrier9s< on behal! o! an( *er$hant9s<' the Carrier shall not be
re"ired to separate or deli&er a$$ordin# to brands' mar0s' nmber' si%e or t(pe o! arti$les or pie$es
$ontained in s$h Container9s< bt onl( to deli&er the total nmber o! Container9s< sho+n on the !a$e
hereo!-
9I< Optional deli&er( shall onl( be #ranted i! arran#ed at the time o! re$eipt o! the :oods b( the
Carrier and e1pressl( pro&ided !or herein and a *er$hant entitled and desirin# to a&ail himsel! o! an(
option so arran#ed and pro&ided !or mst e1er$ise the same b( noti$e in +ritin# #i&en to the Carrier
or its a#ent at the !irst optional port or pla$e o! deli&er( named herein at least E@ hors prior to the
arri&al o! the :oods thereat' other+ise the :oods ma( be landed at an( o! the optional ports or
pla$es o! deli&er( at the CarrierFs option and the CarrierFs responsibilit( shall then $ease-
EFPENSES
Ea$h *er$hant shall be se&erall( liable !or and to indemni!( the Carrier and hold it harmless
a#ainst all e1penses !or $ooperin#' repairin#' !mi#ation' repa$0in# or
re$onditionin# :oods' an( pa(ment' e1pense' !ine' des' toll' dt(' ta1 or impost' loss dama#e'
detention' demrra#e or liabilit( +hatsoe&er natre sstained or in$rred b( or le&ied pon the Carrier
in $onne$tion +ith :oods or be$ase o! !ailre b( an( *er$hant to pro$re $onslar' Board o! Health
or other permits or an( papers that ma( be re"ired at an( port or pla$e in $onne$tion +ith :oods or
to sppl( in!ormation or other+ise to $ompl( +ith all la+s and re#lations in $onne$tion +ith :oods'
or !rom an( other a$t or omission o! an( *er$hant' and also all pro$eedin#s o! an( des$ription
a#ainst :oods b( third parties or an( pro$eedin#s b( +a( o! interpleader or other+ise +hi$h the
Carrier ma( brin# to determine the ri#ht o! o+nership or possession in or to :oods and also an(
e1penses or $har#es !or re#ainin# or attemptin# to re#ain possession o! :oods- Ea$h *er$hant
athori%es the Carrier to pa( andAor in$r all s$h $har#es' e1penses and to do an( matters
mentioned abo&e at his e1pense and as his a#ent and en#a#e other persons to re#ain or see0 to
re#ain possession o! :oods and do all thin#s deemed ad&isable !or the bene!it o! :oods- E&er(
*er$hant and the :oods shall be separatel( liable !or the pa(ment o! an( s ms de to the Carrier
herender b( an( *er$hant-
FREIGHT AND CHARGES
93< The !rei#ht pa(able herender has been $al$lated and based on parti$lars o! the :oods
!rnished b( or on behal! o! the Shipper- The Carrier shall be entitled at an( time to re+ei#h'
remeasre or re&ale :oods and !or this prpose to open and remo&e and e1amine the $ontents o!
an( Container9s< and i! parti$lars !rnished are !ond to be in$orre$t' the !rei#ht shall be ad,sted
a$$ordin#l( and the Shipper and e&er( other *er$hant shall be se&erall( liable !or and bond to pa(
to the Carrier all e1penses in$rred in e1aminin#' re+ei#hin#' remeasrin# or re&alin# the :oods
to#ether +ith the e1$ess 9i! an(< o! the ad,sted !rei#ht o&er the amont pre&iosl( paid-
97< Frei#ht shall be deemed earned on re$eipt o! the :oods b( the Carrier and shall be paid
and retained b( the Carrier nder all $ir$mstan$es +hether an( :oods' Dessel andAor Con&e(an$e
be lost or not lost- Fll !rei#ht shall be paid on dama#ed or nsond :oods-
93< E1$ept to the e1tent 9i! an(< to +hi$h the( are in$onsistent +ith an( o! the e1press terms o!
this Bill o! Ladin#' the pro&isions o! the CarrierFs appli$able tari!! $rrent at the time +hen the :oods
+ere re$ei&ed b( the Carrier !or transportation andAor !or+ardin# nder this Bill o! Ladin# +hi$h relate
to !rei#ht $ontin#en$ies' demrra#e and $har#es pa(able in respe$t o! the $arria#e $o&ered hereb(
and matters asso$iated here+ith are in$orporated into this Bill o! Ladin# and !orm part o! the $ontra$t
$ontained or e&iden$ed herein- >etails o! the rele&ant pro&isions o! the appli$able tari!! ma( be
obtained b( an( *er$hant !rom the Carrier on re"est-
LIEN
The Carrier shall ha&e a lien' +hi$h shall sr&i&e deli&er(' on all :oods and do$ments relatin#
thereto !or all !rei#ht and all $har#es and sms +hatsoe&er pa(able b( or $har#eable to or !or a$$ont
o! the :oods or an( *er$hant9s< nder this Bill o! Ladin# and !or all $osts o! re$o&erin# s$h !rei#ht
$har#es and sms 9in$ldin# $osts o! sale nder ri#ht o! sale hereina!ter pro&ided<- For the prpose
o! s$h lien the Carrier shall ha&e the ri#ht to sell :oods and do$ments b( pbli$ a$tion or pri&ate
treat( +ithot noti$e to an( o! the *er$hants-
LIMITATIONS OF LIABILITY
93< All $laims !or +hi$h the Carrier ma( be liable shall be ad,sted and settled on the basis o!
the ShipperFs net in&oi$e $ost pls !rei#ht and insran$e premim paid' and in no e&ent shall the
Carrier be liable !or dela( or !or loss o! pro!it or $onse"ential loss o! an( des$ription' sb,e$t to an(
le#islation appli$able as pro&ided in Condition 3 hereo!-
97< Sb,e$t to an( $ontrar( pro&isions o! the Ha#e ;les or o! an( le#islation appli$able as
pro&ided in Condition 3-
9a< the Carrier shall not nder an( $ir$mstan$es +hatsoe&er be liable !or an( loss or
dama#e to or in $onne$tion +ith :oods in an amont e1$eedin# T+o hndred Astralia
dollars' or the e"i&alent o! that amont in an( other $rren$(' !or ea$h Container' pa$0a#e'
pie$e or nit o! #oods re$ei&ed herender b( the Carrier as sho+n in the spa$e mar0ed YYY on
the !ront hereo! nless a &ale o! the :oods hi#her than this amont has been de$lared in
+ritin# b( the Shipper be!ore re$eipt o! the :oods b( the Carrier and e1pressl( stated in this
Bill o! Ladin# and e1tra !rei#ht has been paid as re"ired b( the Carrier) and
9b< i! the a$tal &ale o! an( s$h Container' pa$0a#e' pie$e or nit e1$eeds an( &ale
so de$lared' the &ale shall ne&ertheless be deemed to be the de$lared &ale and the CarrierFs
liabilit(' i! an(' in respe$t thereo! shall not e1$eed the de$lared &ale and an( partial loss or
dama#e shall be ad,sted pro rata on the basis o! s$h de$lared &ale' pro&ided ho+e&er that
the Carrier shall not be liable or responsibilit( in an( e&ent to pa( an( $ompensation !or loss or
dama#e to or in $onne$tion +ith :oods i! a de$lared &ale thereo! is sho+n herein +hi$h has
been 0no+in#l( mis/stated b( the Shipper- .here :oods ha&e been pa$0ed or sto+ed into
Container9s< b( or on behal! o! an( *er$hant9s< it is e1pressl( a#reed that the nmber o!
Container9s< sho+n on the !a$e hereo! shall be $onsidered as the nmber o! pa$0a#es' pie$es
or nits !or the prpose o! appli$ation o! limitation o! liabilit( nder the Ha#e ;les le#islation
appli$able as a!oresaid' a ndAor the pro&isions o! this Bill o! Ladin#-
This $ondition applies in addition to and shall not be $onstred as dero#atin# !rom an( de!en$e or
e1$lsion' restri$tion or limitation o! liabilit( a&ailable to the Carrier nder the terms o! this Bill o!
Ladin# or other+ise-
PERIOD OF CLAIMS
Sb,e$t to the Ha#e ;les' an( $laim b( an( *er$hant in respe$t o! loss or dama#e a#ainst
the Carrier mst be noti!ied in +ritin# to the Carrier +ithin se&en da(s !rom the deli&er( o! the :oods
or the date +hen the :oods shold ha&e been deli&ered and an( $laim not so noti!ied shall be
deemed to be +ai&ed and absoltel( barred- Frther all liabilit( +hatsoe&er o! the Carrier shall in an(
e&ent $ease nless sit is bo#ht +ithin one (ear a!ter deli&er( o! the :oods or the date +hen the
:oods shold ha&e been deli&ered-
ON BOARD ENDORSEMENT
The +ords KShipped on BoardL appearin# on the !ront hereo! ha&e no !or$e or e!!e$t' and shall
not be $onstred as an a$0no+led#ment or endorsement b( or on behal! o! the Carrier' nless the(
are or ha&e been dated and si#ned b( a person dl( athori%ed b( the Carrier in that behal!- .here
the said +ords are so dated and si#ned the( shall stand as an a$0no+led#ment on behal! o! the
Carrier o! the :oods ha&in# been re$ei&ed on board a Dessel on the date sho+n' pon and sb,e$t
al+a(s to all o! the terms and $onditions appearin# on the !ront and ba$0 hereo!-
TIMBER
An( statement hereon that timber has been shipped in apparent #ood order and $ondition
does not in&ol&e an( admission b( the Carrier as to the absen$e o! stains' +arps' sha0es' splits'
holes or bro0en pie$es' and this $lase shall be deemed to $onstitte e1press noti$e to all persons
ta0in# deli&er( o! the terms o! this Bill o! Ladin# that s$h timber does o r ma( $ontain pie$es so
a!!e$ted-
L&++,0 11
SHIPMANAGEMENT AND THE ISM CODE
M2021)01 ;,:4 2++&(
.ebsterFs Ne+ .orld >i$tionar( de!ines the +ord Kmana#eL as Kto s$$eed in a$$omplishin#L-
People +ho aim at s$$eedin# in a$hie&in# their bsiness #oals mst mana#e their assets !or #ro+th
!or +hi$h #ood' e!!e$ti&e mana#ement is the 0e(- *ana#ement in di!!erent t(pes o! indstr( !a$es
di!!erent strate#i$' or#ani%ational and operational problem' e&en in the same indstr( it o$$rs- *an(
bsinesses in&ol&e the mo&ement o! #oods !rom one pla$e to another and shippin# pla(s an
important role in transportin#' as ships pro&ide relati&el( ine1pensi&e means o! transportation +hen
$ommodities need to be $arried a$ross e1panses o! +ater- Ship/o+ners and operators are also
bsiness persons and their aims are in all probabilit(' pro!it !or themsel&es and their shareholders-
This shold not be at the e1pense o! sa!et( and en&ironmental polltion and senior mana#ement
shold +ish to $onsider +hether their !irst priorit( shold be the #eneration o! pro!it or the red$tion o!
+asta#e-
:ood ship mana#ement' &ital to sa!e' e!!i$ient and pro!itable ship operations' $omprises t+o
main elements' namel(' te$hni$al mana#ement and $re+ mana#ement-
Te$hni$al mana#ement is the element that ensres that the ship is maintained !or optimm
per!orman$e +ith minimm brea0do+ns and dela(s and in$ldes maintainin# the ship in a$$ordan$e
+ith appli$able re"irements' s$h as !la# State le#islation' international $on&entions and
$lassi!i$ation rles-
Cre+ mana#ement in&ol&es emplo(ment o! $re+ in a$$ordan$e +ith appli$able national rles'
international rles' re#lations and $odes- The $re+ o! a ship $ontribtes to+ards te$hni$al
mana#ement in that the( are responsible !or ship maintenan$e' $ar#o operations and sa!e na&i#ation-
Basi$ $on$ept o! the ship mana#ement is &er( similar !or most ship t(pes- Ships' ho+e&er'
operate nder +ide ran#e o! $onditions- The $ar#o $arried' the trade in +hi$h the ship is en#a#ed and
the ba$0#rond o! the $re+ all ha&e e!!e$t on ship mana#ement and $onse"entl(' mana#ement
st(les &ar( +ith the Compan(-
In toda(Fs hi#hl( $ompetiti&e mar0ets' shippin# $ompanies need e!!i$ient and $ost e!!e$ti&e
+a(s o! operation- Sa!e' polltion/!ree and e!!i$ient operations are essential to #ood ship
mana#ement and pro!its ma( be in$reased b( red$in# a$$idents' stoppa#es and +asta#e thro#h
adoptin# and implementin# a str$tred mana#ement s(stem that !o$ses on sa!et( and
en&ironmental/prote$tion- I! the s(stem is to +or0 and the #oal !or #ro+th is to be a$hie&ed' the
Compan( shold ha&e a str$tred and sond poli$( and emplo( personnel +ith a $ombination o! the
ri#ht s0ills' 0no+led#e and e1perien$e-
The dire$t in&ol&ement o! de$ision/ma0in# in these matters is &ital' its attitde bein# re!le$ted
in the Compan( poli$( and ths dire$tl( in the +or0 o! all the Compan( emplo(ees-
The maritime $ommnit( at the be#innin# has introd$ed the $ltre o! $omplian$e b( settin# p
rles' re#lations' #idelines and $odes relatin# to the $onstr$tion o! ships and the e"ipment to be
$arried onboard !rom the an#les o! en#ineerin# and hman te$hnolo#( &ie+s-
It is not !ortnate eno#h to red$e the a$$idents' as anal(sis sho+s that @6M o! the a$$idents
are $ased b( hman error and I8M ot o! hman related a$$idents are la$0 o! or poor mana#ement-
To impro&e the sa!et( standard the maritime $ommnit( has re$o#ni%ed that the "alit( assran$e as
a #ood s(stem !or pre&entin# the problems and "alit( mana#ement as the method b( +hi$h it is
$arried ot to a$hie&e the #oal-
The $ommnit( has introd$ed the ne+ approa$h' +hi$h $an be named as the $ltre o! sel!/
re#lation- The $ltre o! sel!/re#lation is the one that #oes be(ond the settin# the e1ternall(
imposed $omplian$e as be!ore- It $on$entrates on the internal $ommitmentAmana#ement and
or#anisation !or sa!et( and en$ora#es indi&idal indstries and $ompanies to establish tar#ets !or
sa!et( and prote$tion o! en&ironment espe$iall( the marine en&ironment- The pro$ess has
emphasi%ed the need !or the $ompan( and indi&idal to be responsible !or the a$tions ta0en to
impro&e the sa!et(' rather than seein# them imposed !rom otside' +hi$h re"ires the de&elopment o!
$ompan( spe$i!i$ sa!et( mana#ement s(stem- The pro$ess is to mean that the sa!et( is or#anised b(
those +ho are dire$tl( a!!e$ted b( the impli$ations o! !ailre-
The most important element o! the #ood mana#ement is the $ommitment !rom the top- The
preamble o! the IS* Code states:/
KThe $ornerstone o! a #ood mana#ement is $ommitment !rom the top- In matters o! sa!et( and
polltion pre&ention it is the $ommitment' $ompeten$e' attitdes and moti&ation o! indi&idals at all
le&els that determines the end reslt-L
O/&42(),025 ',+(+ 207 3200)01 4)+6+ )0 +.)/ ,80)01 207 32021&3&0(
The operational $osts in #eneral $onsist o! d(do$0in#' maintenan$e' spares' repairs' ser&i$es
et$-' +hi$h these $osts are !or $omplian$e +ith the national and international $on&entions- Some o!
+hi$h ma( misinterpret this $ost to e1tra e1penditre' in realit( these are the in&estments in asset
maintenan$e- In&estment in asset maintenan$e is that maintainin# the assetsF &ale and mar0et
attra$ti&eness drin# the assetsF $ommer$ial li!e-
The most important means o! pre&entin# maritime $asalties and polltion o! the seas !rom the
ships is to desi#n' $onstr$t' e"ip and maintain ships and to operate +ith properl( trained sea!arers
in $omplian$e +ith international $on&entions and standards relatin# to maritime sa!et( and polltion
pre&ention s$h as:/
3 H International Con&ention !or the Sa!et( o! Li!e at Sea 9SOLAS<)
7 H International Con&ention !or the Pre&ention o! Polltion !rom Ships 9*A;POL<)
3 H International Con&ention on Load Lines 9LL<)
E H Con&ention on the International ;e#lations !or Pre&entin# Collisions at Sea 9COL;E:<)
8 H International Con&ention on Standards o! Trainin#' Certi!i$ation and .at$h/0eepin# !or Sea!arers
9STC.<)
5 H ILO Con&ention 3EI [*er$hant Shippin# 9*inimm Standards< Con&ention\-
The shorta#e o! the "ali!ied sea!arers and the ine1perien$ed sea!arers enterin# the indstr( has
$ased the mannin# ris0 in the ship mana#ement se$tor- The shorta#e o! "ali!ied sea!arers is
$ased b( the sea!arers !or the traditional maritime $ontries be$ome e1pensi&e and the( !eel that
the pro!ession be$omes less attra$ti&e- The $losin# do+n o! the maritime instittions in the traditional
maritime $ontries is another !a$tor o! shorta#e-
To sol&e the problem o! the ine1perien$ed sea!arers emplo(ment International *aritime
Or#anisation has adopted the International Con&ention on Standards o! Trainin#' Certi!i$ation and
.at$h/0eepin# !or Sea!arers' 34I@ 9STC.<- International Con&ention on Standards o! Trainin#'
Certi!i$ation and .at$h/0eepin# !or Sea!arers' 34I@ 9STC.< as amended 3448 la(s do+n trainin#'
$erti!i$ation and "ali!i$ation re"irements !or O!!i$ers 9>e$0' En#ine and ;adio< and ratin#s !ormin#
part o! a +at$h 9>e$0 and En#ine< in the Sea!arersF Trainin# and .at$h/0eepin# 9STC.< Code- The
Code is in t+o parts- Part A $ontainin# mandator( standards and part B $ontainin# #idan$e on the
implementation interpretation' appli$ation and en!or$ement o! the Con&ention- All s$h sea!arers are
re"ired to ha&e a $erti!i$ate' endorsed in a ni!orm manner- It is also spe$i!ies basi$ prin$iples to be
obser&ed in 0eepin# de$0 and en#ine +at$hes and spe$ial "ali!i$ation re"irements !or personnel
on oil' $hemi$al and li"e!ied #as tan0ers-
I*O resoltion A-@46 973< and A-488 973< 9on prin$iples o! sa!e mannin#< re$ommended that all
Administrations pro&ide ea$h o! their re#istered ships +ith a do$ment spe$i!(in# the minimm
nmber and #rades o! "ali!ied sea!arin# personnel re"ired to be $arried !rom the sa!et( standpoint-
It #i&es basi$ prin$iples and detailed #idan$e to be obser&ed b( Administrations +hen assessin# the
sa!e mannin# o! ships-
ILO Con&ention 3EI [*er$hant Shippin# 9*inimm Standards< Con&ention 34I5\ re"ires the
Administrations to ha&e e!!e$ti&e le#islation on sa!e mannin# standards' hors o! +or0' sea!arersF
$ompeten$(' and so$ial se$rit(- It also sets emplo(ment standards e"i&alent to those $ontained in
a ran#e o! ILO instrments 9$o&erin# e-#- minimm a#e' medi$al $are and e1amination' so$ial
se$rit(' trainin#<-
C,3/5;)01 8)(. (.& ISM C,7&
The International *ana#ement Code !or the Sa!e Operation o! Ships and !or Polltion
Pre&ention [International Sa!et( *ana#ement 9IS*<Code\ +as adopted as ;esoltion AIE393@< b(
the International *aritime Or#anisation 9I*O< in order to pro&ide an international standard !or the sa!e
mana#ement and operation o! ships and !or polltion pre&ention- At the SOLAS Con!eren$e o! I*O
held in *a( 344E' the Code +as !ormall( in$orporated in Chapter I] o! the International Con&ention
!or the Sa!et( o! Li!e at Sea 9SOLAS<- IS* Code has been de&eloped b( I*O in response to the
pressre applied b( so$iet( in #eneral as a reslt o! loss o! li!e and en&ironmental polltion
asso$iated +ith reported a$$idents- IS* Code +as amended b( *SC ;esoltion 36E9I3<-
The re"irement o! the IS* Code has $ome into !or$e !or the !ollo+in# &essel sin$e 3 Bl( 344@:/
3 H passen#er ships in$ldin# hi#h speed passen#er $ra!t)
7 H oil tan0ers)
3 H $hemi$al tan0ers)
E H #as $arriers)
8 H bl0 $arriers) and
5 H Hi#h speed $ar#o $ra!t o! 866 #ross tonna#e and o&er-
The re"irements o! the IS* Code +ill be$ome mandator( to the !ollo+in# &essels b( 3 Bl( 7667:/
3 H other $ar#o ships o! 866 #ross tonna#e and o&er) and
7 H mobile o!!/shore drillin# nits 9*O>?< o! 866 #ross tonna#e and o&er-
.hen the IS* Code is in !or$e' all a!!e$ted ships and the $ompanies 9o!!i$es< that $ontrol them
mst ha&e appropriate IS* Certi!i$ation' that is' >o$ment o! Complian$e 9>OC< !or $ompanies
9o!!i$es< and Sa!et( *ana#ement Certi!i$ate 9S*C< !or ships-
A #ood Sa!et( *ana#ement S(stem $an not be ta0en pla$e o&erni#ht or +ithot an( $osts-
IS* Code is mandator(' +ithot it the Compan( $an not operate the shippin#' ta0in# an ad&anta#e o!
it' e!!e$ti&e implementation $an $on&ert the $osts into in&estments' as in&estments in a$hie&in#
sa!et(' polltion pre&ention' less $laims' less brea0do+ns and o! $orse a$$ident !ree operation-
The bene!its o! a #ood sa!et( mana#ement s(stem are man( and in$lde:
3 H $omplian$e +ith national and international re"irements)
7 H moti&ated personnel +ho +or0s to+ards the establishment in the Compan( o! a s(stem that
red$es loss o! li!e' propert( and prote$tion o! the en&ironment espe$iall( the marine en&ironment)
3 H in$rease o! pro!its thro#h red$ed losses and $laims)
E H !a&orable insran$e terms)
8 H planned and $ontrolled operations) and
5 H $ontrolled mana#ement o! assets !or #ro+th-
.ishin# all the ship o+ners and ship mana#ers in a$hie&in# the I*OFs aim KSa!er shippin# and
$leaner o$eansL thro#h the e!!e$ti&e implementation o! the IS* Code-