1. TRANSPORTATION

2. CONTRACTS OF TRANSPORTATION
Sales contract
CARRIER
SELLER
BUYER
Contract of
carriage
Forwarding
contract
FREIGHT FORWARDER
The consignor (the seller or the buyer ) makes a forwarding contract with the
freight forwarder
The freight forwarder can be the carrier, himself, or another company

3. FREIGHT FORWARDER Specialized in issues such as:
Determining the availability of ships and port facilities
Estimating costs
Booking space
Procuring export licenses
Reviewing letter of credit terms
Preparing shipping documents, export declarations
Purchasing insurance
Procuring certificates of origin from local Chambers of Commerce

4. CARRIAGE OF GOODS BY SEA
International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading
=> Hague Rules 1921
(Hague-Visby Rules 1968)
Liability limits to carriers
Responsibilities of carriers
COMMON CARRIER – CHARTERPARTY
Conference line: an association of seagoing carriers who have joined together to offer common freight rates
Independent lines: have their own rate schedules
Tramp vessels: do not operate on established schedules

5. Making the ship seaworthy
CARRIER’S DUTIES
Making the ship seaworthy
Properly manning, equipping and supplying the ship
Making the ship fit and safe for reception, carriage and preservation of the goods
Properly and carefully loading, handling, stowing, carrying, keeping, caring for and discharging the goods
burden of proof is on the persin claiming the benefit of this exception

6. CARRIER’S IMMUNITIES
Act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation of the ship
Fire, perils and accidents of the sea
Act of God
Act of war or public enemy
Insufficiency of packing or marks
Any cause arising without the actual fault and privity of the carrier
or fault or negligence of his agents or servants.

7. BILL OF LADING The carrier checks for outward compliance of the goods
SELLER
BUYER
BILL OF
LADING
as a “receipt”
OUTWARD COMPLIANCE:
Checks that the labels comply and that the packages are not damaged
=> the appropriate agent of the carrier will sign the bill and return it to the shipper
Different Bills of Lading:
Through bills
Destination bills
Forwarder's bill
Negotiable bill
Straight bills
Clean bills
On-board bills
Received-for-shipment bills
The carrier checks for outward compliance of the goods
=> gives the seller a clean B/L or a claused B/L
B/L is an evidence of
the contract of carriage
the receipt of the goods

8. as a ”document of title”
BILL OF LADING
BUYER
SELLER
THE GOODS
BILL OF
LADING
as a ”document of title”
B/L is a symbol of the goods while they are in transit
The holder of the bill has a claim to title and by surrendering the bill,
to delivery of the goods

9. INLAND CARRIAGE
Convention on the Contract for the International Carriage of Goods by Road, CMR (1956)
Convention Concerning International Carriage by Rail, COTIF (1980)
=> carrier’s responsibilities and limitations of liability
SELLER
BUYER
THE GOODS
COTIF AND CMR
=>
1) DUTIES TO THE CARRIER
2) LIMITATIONS OF LIABILITY
CONSIGNMENT
NOTE
Consignment note is an evidence of
the making of a transport contract and
the receipt and
the condition of the goods

10. CARRIAGE OF GOODS BY AIR
Warsaw Convention 1929
THE GOODS
AIR
WAYBILL
SELLER
BUYER
Air waybill is NOT a document of title
Warsaw Convention:
limitation of liability of the carrier
the shipper does not have the burden of proof when makes a claim within 7 days of carrier causing injury to any lost, damaged, or delayed goods
Air waybill arrive with the goods and describes
the nature of the goods being shipped, the apparent condition of them
and their packaging
the weight, quantity, volume or dimension of the goods

11. INCOTERMS 2000

12. RISK PASSING INCOTERMS 2000 EXW EXW FCA FAS FOB CFR CIF CPT CIP DAF
Ex Works
EXW
FCA
Free Carrier
FAS
Free Alongside Ship
FOB
Free On Board
CFR
Cost and Freight
CIF
Cost, insurance and Freight
CPT
Carriage Paid To
CIP
Carriage & Insurance Paid to
DAF
Delivered at Frontier
DES
Delivered Ex Ship
DEQ
Delivered Ex Quay
DDU
Delivered Duty Unpaid
DDP
Delivered Duty Paid
SELLER’S RISK
RISK PASSING
BUYER’S RISK

13. Contracts of departure
E Terms
Contracts of departure
EXW
(Ex Works… named place)
The seller delivers when
he places the goods at the disposal of the buyer at the seller’s premises or another named place
not cleared for export and not loaded on any collecting vehicle
The buyer has to bear all costs and risks involved in taking the goods from the seller’s premises
If the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale
This term should not be used when the buyer cannot carry out the export formalities directly or indirectly. In such circumstances, the FCA term should be used, provided the seller agrees that he will load at his cost and risk.

14. Main transport not paid
F Terms
Main transport not paid
FCA
(Free Carrier…named place)
The seller delivers the goods, cleared for export, to the carrier or any other person nominated by the buyer at the named place
If delivery occurs at the seller’s premises, the seller is responsible for loading, otherwise not

15. (Free Alongside Ship… named port of Shipment)
FAS
(Free Alongside Ship… named port of Shipment)
The seller clears the goods for export
The seller delivers when the goods are placed alongside the vessel at the named port of shipment
The buyer has to bear all costs and risks of loss of or damage to the goods from that moment
FOB
(Free On Board … named port of Shipment)
The seller has to clear the goods for export
The seller delivers when the goods pass the ship’s rail at the named port of shipment
The buyer has to bear all costs and risks of loss of or damage to the goods from that point
FAS
SEA OR INLAND WATERWAY TRANSPORT ONLY
The seller’s duty to clear the goods for export is a reversal from the Incoterms 1990
If the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale
FOB
ONLY FOR SEA OR INLAND WATERWAY TRANSPORT

16. C Terms Main transport paid CFR
(Cost and Freight…named port of destination)
The seller has to clear the goods for export
The seller must pay the costs and freight necessary to bring the goods to the named port of destination
The seller delivers when the goods pass the ship’s rail in the port of shipment
The risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer
CIF
(Cost, Insurance and Freight…named port of destination)
Represents the condition of CFR, but
The seller has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage
ONLY HHFOR SEA AND INLAND WATERWAY TRANSPORT
CIF
The seller is required to obtain insurance only on minimum cover

17. (Carriage Paid To…named place of destination)
CPT
(Carriage Paid To…named place of destination)
The seller must clear the goods for export
The seller delivers the goods to the carrier nominated by him (if many carriers, the first one of them)
The seller must pay the cost of carriage necessary to bring the goods to the named destination
The buyer bears all risks and any other costs occurring after the goods have been so delivered
CIP
(Carriage & Insurance Paid to…named place of destination)
The seller has to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage
Otherwise represents CPT
CPT, CIP
Multimodal
Carrier means any person who, in a contract of carriage undertakes to perform or to procure the performance of transport, by rail, road, air ,sea inland waterway or by a combination of such modes

18. D Terms Contracts of arrival DAF (Delivered At Frontier…named place)
The seller delivers when the goods
are placed at the disposal of the buyer on the arriving means of transport
not unloaded
cleared for export but
not cleared for import
at the named point and place at the frontier, but
before the customs border of the adjoining country
Frontier may be any frontier including that of the country of export => must be defined precisely
DAF
MONOMODAL: LAND
If the parties wish the seller to be responsible for teh unloading of teh goods from teh arriving means of transport and to bear teh risks and costs of unloading, theis should be made clear by adding explicit wording to this effect in the contract of sale

19. (Delivered Ex Ship…named port of destination)
The seller delivers
when the goods are placed at the disposal of the buyer on board the ship
not cleared for import at the name port of destination
The seller has to bear the costs and risks involved in bringing the goods to the named port of destination before discharging
DEQ
(Delivered Ex Quay…named port of destination)
The seller delivers when the goods are placed at the disposal of the buyer
not cleared for import
on the quay (wharf) at the named port of destination
The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf)
The buyer has to clear the goods for import and to pay for all formalities, duties, taxes and other charges on import
DES, DEQ
ONLY BY SEA OR INLAND WATERWAY, OR MULTIMODAL TRANSPORT ON A VESSEL IN THE PORT OF DESTINATION
DEQ
Buyer’s duty to clear the goods for import in a reversal from Incoterms 1990

20. (Delivered Duty Unpaid…named port of destination)
The seller delivers the goods to the buyer
not cleared for import
not unloaded from any arriving means of transport
at the named place of destination
The seller has to bear the costs and risks involved in bringing the goods thereto, but
The buyer has to bear the costs of duties for import in the country of destination
DDP
(Delivered Duty Paid…named port of destination)
cleared for import
The seller has to bear the costs and risks involved in bringing the goods thereto including the costs of duties for import in the country of destination
DDU, DDP
MULTIMODAL