Commercial_Correspondence

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This fax is to confirm our telephone conversation this morning in which we asked if you could find a ship of six to seven thousand tons which we could charter for six months to take shipments of grain from Baltimore, North America, to various ports along the South American coast.

We will need a ship that is capable of making a fast turnround and will be able to manage at least ten trips within the period.

B.Meredrew

B.Meredrew (Mr) Director

Einquivy focir a erne chaBtert

A London firm wants to charter a ship to transport grain.They contact a shipbroker. Most of this correspondence is done by fax or email,with letters used to confirm

the charter and a charter party signed to confirm the transaction.

gppinshi andonatiportTrans

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Transportation and shipping

SMOvokev's vetay

Total pages 1

Dear Mr Meredrew

With reference to your fax of 10 January 20—, we are pleased to inform you that we have identified a vessel that will meet your requirements.

She is the Manha ttan, and is currently docked in Boston. She is a bulk carrier with a cargo capacity of seven thousand tons. She has a maximum speed of 24 knots, so would certainly be capable of ten trips in the period you mentioned.

Please fax us to confirm the charter and we will send you the charter party.

Yours sincerely

8dinda, Mars-ton,

Belinda Marston Charter Department

CHAIRMAN: P.S. KEYSER

DIRECTORS: L.M. NOSOME, R.N. LANDON

REG NO: LONDON 818171

VAT NO: 31 4281563

TELEPHONE +44 (0)20 7467 3149 (10 lines)

FAX +44 (o)20 7467 59 59

PUTNEY & RAVEN

MERCHANTS LTD

Dealers House

Cantley Street

London

wa lAR

To Keyser Shipbrokers

Fax 020 7671 9873

From David Raven, Shipping Dept

Date 7 July 20—

Subject Ship charter

Pages 1

We would like to charter a vessel for one voyage from Newcastle, NSW, Australia, to St Malo, Brittany, France, to take a consignment of 4,000 (four thousand) tons of bauxite.

Our contract states that we have to take delivery between 1 and 5 August, so we will need a ship that will be able to load during those dates. Please advise us if you can get a vessel and let us know the terms.

Dara Ram&

David Raven

Shipping Manager

Enquirry f*cr a voyage thafiteT

Putney & Raven Merchants need a

ship to transport a

consignment of

bauxite.

ngppishi andonatiportTrans

1 What does an option on a vessel mean?

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218

Total pages 1

You should have already received our fax in which we said that we had an option on a vessel, MS Sheraton, which is docked in Melbourne, Australia at present. She has a cargo capacity of 7,000 (seven thousand) tons and although she is larger than you wanted, her owners are willing to offer a part charter.

They have quoted £12.30 (twelve pounds, thirty pence) per ton which is a very competitive rate considering you will be sharing the cost.

Could you fax us your decision as soon as possible?

BehAda, Marstot,

Belinda Marston

Charter Department

CHAIRMAN: P.S. KEYSER

DIRECTORS: L.M. NOSOME, R.N. LANDON

REG NO: LONDON 818171

VAT NO: 31 4281563

Generfafi druarrtecr

GENCON.

UNIFORM GENERAL CHARTER.

AS REVISED 1922.

(Only to be used for trades for which no approved form is in force).

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Transportation and shipping

Points to remember

Road, ran, and .R tvansport

1 In road, rail, and air transport the choice of method depends on whether the main consideration is speed, direct delivery, or economy. These considerations obviously relate to the type of consignment involved.

2 The consignment note is the main form of documentation used in road and rail transport, and the air waybill in the case of air transport. They are receipts, not documents of title, and therefore not negotiable.

Shipping

1 There are various types of vessel available to carry different goods, e.g. bulk carriers, tankers, and container vessels.

2 Shipping companies can either belong to the Shipping Conference, an international organization which sets prices for transporting goods or passengers, or get ships on Baltic Exchange, where ships and aircraft can be chartered through brokers.

3 The bill of lading is the main form of documentation used in shipping. It can be a document of title. It may be clean or claused, terms used to indicate whether the goods were in perfect condition when taken on board or if there was something wrong with them.

Containev savvicas

A convenient method of transporting many types of consignment is containers (large metal boxes) which are taken to the

docks and then loaded on to container vessels. Small consignments from different exporters can be loaded into a single container. For documentation, container companies usually use either container waybills or multimodal bills of lading.

INSURANCE PROCEDURES

Companies and individuals protect themselves against loss, damage, or injury by taking out insurance policies, which are contracts

C OVERING them against future risks. The usual process of insuring a business or oneself is as follows:

1 APROPOSAL FORM is completed by the client, i.e. the company or individual who wants insurance COVE R. This states what is to be insured, how much it is worth, how

12 long the policy will run, and under what conditions insurance is to be effected, as the policy may not automatically cover the insured against ALL RISKS (AR).

2 The insurance company then works out the PREMIUM, i.e. the price of the insurance. The premium is usually quoted in pence per cent, e.g. pence per hundred pounds. This means that for every Lop° of insurance the client would have to pay x pence. So if you insured your computer for £1,500 at loop%, you would have to pay £15.00 per annum for the premium.

3 If the insurance company is satisfied with the information given on the proposal form, they issue a c ovE R NOTE to the client. This is not the policy itself, but an agreement that the goods are covered until the policy is ready.

4 When the policy is ready, it is sent to the client. It tells the client that they are INDEMNIFIED against loss, damage, or injury under the conditions of the policy. As insurance is based on the principle of good faith, and supported by laws against fraud, insurance companies accept that the items being insured belong to the client, are not being insured more than once, are of the value stated, and that the client will follow the conditions of the policy. Indemnification means that the insurance company will compensate the client to restore their original position before the loss or damage. Therefore, if you insured your car for £12,000 and three months later it was wrecked, you

would not receive £12,000, but the market price of the car if it had not been damaged. For example, it might have depreciated by zo% to £g,600. The insurance company will also have the right of s us Ro GAT' o N, which means they can now claim the wrecked vehide and sell it for any price they can get. However, insurance companies also offer policies which cover goods at their original prices or may replace the item. Many household policies, for example, offer this guarantee.

In the case of injury or death, or LIFE As suRANcE, the principle of BENEFIT

PAYMENT operates. The injured person (or their dependants if they are killed) is paid compensation. The life assurance BENEFICIARY is paid according to his or her contributions and interest earned on investment.

Insurance companies are large institutional investors on the stock market, and by investing premiums they are able to cover claims for compensation and pay matured life assurance policies.

FIRE AND ACCIDENT INSURANCE

Frirre insunnze

Fire insurance companies offer three main types of policy:

1 Insurance of home and business premises and their contents

2Special perils policies, which protect the client against loss or damage due to special factors, e.g. floods or earthquakes

3CONSEOUENTIAL LOSS INSURANCE, Which means insurance against losing money as a consequence of an accident, e.g. when a company is unable to produce goods because of fire damage to their factory.

katdent lasurtanee

Accident insurance covers four areas:

1 INSURANCE OF LIABILITY,WhiCh covers

employers' liabilities for industrial accidents, accidents to people attending functions on company business, and motor insurance.

2 Property insurance, which is part of the service fire insurance companies provide, but also includes a wide range of protection against riots, terrorism, gas explosions, etc. Usually, the client takes out an all risks policy, which offers full protection.

3 Personal accident insurance, which offers compensation in the form of benefit payments to people injured (or their dependants if they are killed) on outings, in sporting accidents, or travelling by train, coach, or air.

4 INSURANCE OF INTEREST,WhiChproteds

companies against making costly mistakes. For example, publishers might want to cover themselves against libel, i.e. being sued for publishing something which damages someone's reputation. Accountants and lawyers also protect themselves with insurance of interest. can be included under this heading. These are used by companies to insure against their employees defrauding them or stealing from them.

Companies and individuals make claims for loss, damage, or accident by filling in a claim form, which tells the insurance company what has happened. If the insurers accept the claim, often after an inspection or investigation, they will pay compensation.

The insurance company will not pay compensation under the following conditions: if the C LAIMANT was negligent; if the daimant suffered the injury or loss outside the terms of the policy; or if the claimant misled the

insurers when obtaining insurance, e.g. overvalued the article, insured the same thing twice, or gave false information on the proposal form.

The insurer may, of course, offer less compensation than the claimant is asking for. If the claimant disagrees with the offer, they can call in an independent ASSESSOR, and then, if necessary, take the case to court. But usually insurance companies are quite reasonable in their assessments, and small claims are sometimes paid without question.

aM eillSUI

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