11. Shipping documents

If cargoes are carried by a ship, the shipper is obliged to charter the ship. The freighting or chartering of such a ship is done through a shipping agent, who signs an agreement with the shipowner in the name of the charterer. Such an agreement is called the Charter-party. The Charter-party must include all terms concerning the rate of freight, the time of loading, the port or ports of destination, the loading conditions, and so on. After signing such an agreement the ship is considered to be chartered and the loading of the goods may begin.

The stevedore looks after the stowage and the trimming in the holds, in order to fill the cargo space and to protect the goods from any damage during the voyage.

As soon as the cargo is agreed upon, the Charter-party is loaded, the Captain of the ship hands over to the shipper a signed receipt, which confirms that the whole cargo is received on board ship.

Such a receipt is called the Bill of Lading. Depending on the requirements of the shippers, the Bill of Lading is issued in three, four, or more copies. There are 3 function of a B/L: 1)it’s a receipt for the cargo taken on board. 2)it’s a document of title to the cargo. 3)it’s a contract of Carriage repeating in detail the terms of the contract. B/L is negotiable document and can be bought and sold.

A manifest is a document containing complete specifications of the goods loaded by a ship. Cargo manifest are drawn up by the agents in the port of loading, based upon the Bills of Lading.

The Manifest contains the following data: the name of the ship, port of loading and date of departure, port of destination, number of Bills of Ladings, marks of packages and contents, names of shippers and consignees, weight of packages, rate of freight per unit, total freight.

Mate’s Receipt is a document signed by the Chief Officer, acknowledging the receipt of cargo on board ship. If the cargo is not “in apparent good order and condition” a corresponding remark will be inserted in the Mate’s Receipt. The Mate’s Receipt is exchanged for Bills of Lading when loading is finished.

Bill of Lading is issued after all mate’s receipts have been collected. Bill of Lading contains the same descriptions of goods and remarks.

Cargo-plan or Stowage plan shows the part of the hold and the holds in which the various cargo pieces have been stowed. It shows marks and destination of cargo.

Cargo-plan gives a clear picture of the disposition of each cargo piece.

Commercial invoice is the single document, which describes the entire transaction from start to finish.

Certificate of origin is used to determine in what country merchandise was manufactured.

Importers are now required to use an import passport to document payment of the import transaction. Shipping documentation may need to include a certificate of safety and health certificate. May be required additional documents for shipment of tobacco, alcohol, firearms, hazard materials etc.

Shipping Documents

The most important document is the Bill of Lading. To begin with it contains a very important information. On its face there is a description of the ship, there are names of the shipowners, shippers and consignees, of the ports of loading and discharging. There is a description of the goods: kind, quantity and measure, condition, packing, marks and numbers. The rate of freight and total freight are also shown on its face. There are also the number of original B_s/L issued, necessary signatures and the date of issue and Master’s signature. On its back there conditions of transportation.

The three main functions of the Bill of Lading are:

1. It is Master’s receipt fir the cargo taken on board his ship.

2. It is a document of title: the person(s) who holds the Original B/L has right to the cargo described in it.

3. It is a proof of arrangements between the shipowners and the Cargo Owners.

The B/L is a negotiable document, which means that it can change hands, i.e. be bought or sold.

The B/L is issued on completion of loading and signed by the Master. The cargo is delivered to the Consignees against the B/L. If the Consignee is satisfied with condition of the cargo, he does not make any remarks as to the defective condition of the cargo or its packing or quantity, the B/L is foul and dirty. There are different kinds of the B/L, e.g. (for example) liner B/L, container B/L, dry cargo B/L, tanker B/L, combined transport B/L, etc.

The cargo is taken on board in accordance with the Cargo Plan which shows the disposition of the cargo to be taken on board. It is drawn up well in advance by the Agent and the Cargo Officer or by the Chief Controller’s Office. In any case it should be approved by the Master.

The main factors which must be taken in consideration when drawing up the cargo plan are:

1. safety of the ship at any time at sea after loading;

2. safety of the cargo;

3. rotation of ports (i.e. each consignment is to be easily accessible in the port of discharging)

On completion of loading copy of the Stowage Plan (final Cargo Plan) is faxed to the port(s) of discharging together with the Cargo Manifest to facilitate discharging (to make all preliminary arrangements for discharging).

The Cargo Manifest is drawn up on completion of loading. It contains complete information about the cargo loaded on board: the name of the ship, the port of loading, the port of destination and the date of ship’s departure, the number of all the B_s/L, description of the cargo (its kind, weight and measure, marks and numbers), shippers and consignees’ names, rate of freight, total freight.

The B/L and the Cargo Manifest are also among the documents required by the Customs.