Types of freight. Lumpsum freight is an agreed amount of freight on a lumpsum basis for the use of the vessel to carry a particular cargo on a given stated voyage.
Advance freight or pre-paid freight is preferable with liner shipments. Advance freight is at the risk of the person who makes the advance and is not returnable in the event that the cargo is not delivered in its entirety at the port of destination.
Deadfreight is paid when the Charterer has failed to load the vessel with a full and complete cargo within the terms of the contract. It is freight for shortshipment. Shortshipment – is shortage of cargo shipped by various reasons, for example, lack of full cargo in warehouse prior to ship’s departure.
There may be a number of reasons during the course of a voyage whereby the cargo on board a particular vessel cannot be delivered at the destination and has to be returned back to Shipper in respect of which the Shipowner is fully entitled to charge back freight for the return carriage of those goods.
Unit 4. Carrier’s responsibility
The Carrier is responsible for the goods until they are delivered to the Consignee. That is, under the Bill of Lading the Carrier’s liability shall commence when the goods have been loaded over the ship’s rails at the port of shipment and cease before the goods have passed the ship’s rails on discharging at the port of destination.
If some damage to or loss of goods occurs within that period the Carrier is to pay money for this. Delay in delivery is to be paid by the Carrier too.
But there are some cases when the Carrier is not guilty of such damage or loss. For example, the Carrier is relieved of liability for loss or damage resulted from neglect or default of the Master or ship’s crew, wrongful act or neglect of the Merchant, defective condition of the packing unless such packing is effected by the Carrier, inherent vice of the goods, insufficiency or inadequacy of marks or numbers etc. Damage or loss may result from force majeure, accidents at sea or fire on board. They may also arise from the arrest of the ship, from quarantine, from war. All of these causes discharge the Carrier from responsibility for any damage to or loss of the goods.
The burden of proving that the loss or damage was due to causes mentioned above rests upon the Carrier.
The Carrier shall have the option to detain the goods until freight is paid. This option is called Carrier’s lien. He may exercise a lien on the goods for the contributions in respect to the General Average.
General average – is damages sustained due to intentional and reasonable contributions and expenses made for the purpose of saving the ship, freight and goods from general danger and distributed between contracting parties in particular proportion.
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