Packages of cargo or "parcels" (small quantities) known as "general cargo" and individually carried in the cargo compartments of a ship. Such cargo is not in "bulk cargo" form and not in unitised or containerised form. If the term is used as a verb "to break bulk", it indicates "to open hatches and commence discharge". … [Read more...]

An agent can make contracts between his principal and a third party. When he does this he "warrants" (or "promises" to the third party) that he has authority to carry out the act. When an agent, for example, a shipbroker, acts without any authority from his principal or exceeds the authority given to him, there is no contract and the principal is not bound. The agent can then become liable to one, or both, of the parties to the presumed contract for the breach of the warranty of authority. … [Read more...]

A contract contains obligations of each of the parties to the agreement. If these obligations are not carried out or not performed or, if performed badly, a breach of contract occurs. The result of the breach depends on how important the obligation is to the purpose of the contract. If the breach is very serious, (originally called a "breach of condition") the innocent party may be able to repudiate or cancel the contract and possibly also claim for monetary compensation, called "damages". If the party committing the breach is in the process of performing the contract, he may be reduced to the … [Read more...]

Brackish water is water that has a density between that of fresh water (1000 kgs/cubic metre) and that of salt water (1025 kgs/cubic metre). When a ship is required to proceed to a port where the water density is brackish, the ship's draught will be more than the draught in seawater and less than the draught in fresh water. Normally, the difference between the seawater draught and the fresh water draught is the full "fresh water allowance". In this case, the draught will have to be calculated using the measured water-density and perhaps notified to port agents and/or charterers. … [Read more...]

A charterer may insist that a charterparty contains a clause, which causes the shipowner to take the risks if the vessel is delayed by a "boycott" by labour. For example, waterside workers (stevedores) who belong to a union which is affiliated with the International Transport Workers Federation (ITF), may combine to refuse to handle cargo or to refuse to allow a vessel to handle cargo if the shipowner does not have an ITF-approved collective agreement with the crew and does not possess a "Blue Certificate". Such a clause in a time charter usually provides that if the vessel was "boycotted" … [Read more...]

This is a clause found in both voyage and time charterparties and also in bills of lading. It is a protective clause, to give protection to one side. For example, a typical clause in a charterparty can state:"Both-to-blame collision clause:If the ship comes into collision with another ship as a result of the negligence of the other ship and any act, neglect or default of the Master, mariner, pilot or servants of the Carrier in the navigation or in the management of the ship, the owners of the goads earned hereunder will indemnify the Carrier against all loss or liability to the other … [Read more...]

This expression is frequently used when negotiating for the chartering of a ship, as regards rate of loading and discharge; loading and discharging expenses; appointment of charterers' or owners' agents at the port of loading/discharge, etc. This term implies that the arrangements agreed upon apply both at the loading and discharging port(s). … [Read more...]

"Good faith”. This is a legal term that comes from the Latin language and suggests honesty or sincerity. For example, in negotiations for a charter fixture, one side must give bona fide information about the ship or the cargo to the other side.   … [Read more...]

This is a document that may be carried by ship; it indicates that the shipowner has entered into an agreement with the ITF (the International Transport Workers' Federation) that the crew are being paid wages and salaries, which are specified by the ITF.A clause in a charterparty, especially in a time charter, may require the shipowner to guarantee that he will enter into such an agreement and therefore that the ship will carry such a certificate. Failure to carry such a certificate may cause a ship, which may be registered in an "open registry" country, such as Panama or Liberia, to be … [Read more...]

This expression is used for shipments under a charterparty. The purpose of these "terms" is mainly to clarify which side pays for the loading and discharging costs of the cargo. The-phrase "berth terms" seems somewhat outdated, the more common phrases to describe the re- sponsibilities being "liner terms" and "gross terms". … [Read more...]