Chapter 4
International Transportation of goods
Objective
After studying this chapter，you should be able to
1. describe methods of transportation.
2. describe the features of liner transport.
3. calculate liner freight.
4. explain what international multimodal transport is.
5. grasp clause of shipment.
6. describe major shipping documents.
Key terms
Cargo linerBareboat charter
Charter partyShipping documents
Time charter Voyage charter
Liner freight tariffTransshipment
On Board B/L
International transportation plays an important role in international trade. In a broad sense, transportation is defined as the transportation of goods and passengers from one place to another. In international trade, import and export goods must be transported from the place of dispatch to the destination through various modes of transport.
4.1Modes of transportation
International transportation involves different modes of transportation, and each of them has its own operation characteristics and capabilities, which give them comparative advantages and disadvantages. When a company chooses the mode of transportation, generally speaking, the important factors to be considered are cost and time. The main modes of transportation in international trade are ocean transportation, land transportation, air transportation, pipeline transportation and continental bridge transportation.
4.1.1Ocean transport
Although there are many methods of transportation in international trade，ocean transportation is still the most important mode at present. It accounts for 80% of international transport. It is not confined by roads and railways，and it is considered a cheap mode of transport for delivering large quantities of goods over long distances. But ocean transport is slow，vulnerable to bad weather and less punctual if compared with road or air transport. According to the kind of cargo they carry，the ships used in ocean transport are briefly classified into dry cargo ships and tankers. Dry cargo ships include general cargo vessel，bulk vessel，ore carrier，timber carrier，refrigerated vessel，container ship，roll⁃on/roll⁃off ship，etc. Tankers include oil tanker and liquefied gas carrier.
As far as ocean transportation is concerned ,goods transport is mostly done by liners or tramps.
Liners
Liner，a short form of regular shipping liner，is a vessel with regular sailings and arrivals on a stated schedule between specific ports. Liner transportation has the standard of calculating freight，the liner's freight tariff，the basic rate，and the surcharges or additional fees and the special discount for freight and so on. The liners can also be divided into two kinds：conference line vessel，which is operated by a member of a shipping conference，and non⁃conference line vessel，which is operated by shipping companies that do not belong to any conference but provide scheduled services.
（1）The main features of liner transport usually include：
The liner has the regular lines，ports，timetable and comparatively fixed freight.
The ship⁃owner usually leases part of shipping space instead of the whole ship.
Liner freight covers loading and unloading charges，so the carrier is responsible for loading and unloading，which is usually called “Gross Terms”.
• The B/L drawn by the shipping company is the shipping contract between the carrier and the consignor. The rights and obligations of the carrier and the consignor are based on the B/L drawn by the shipping company.
（2）Freight of liners is generally calculated according to the following standards：
According to gross weight of the cargo：Weight Ton（WT）[重量吨与体积吨都叫作运费吨。]. Cargoes that are charged by WT are marked “W” after the name of article in the tariff.
According to the measurement：Measurement Ton（MT）. A measurement ton is either 1 cubic meter or 40 cubic feet，which is indicated by “M” in the tariff.
According to gross weight or measurement，i.e.，choosing the higher rate between the two. It is indicated by “W/M” in the tariff.
（3）Besides the basic freight rate，liners may require payment of various surcharges or additional fees，such as bunker adjustment factor（BAF），heavy lift additional，over length additional，tank cleaning charge，port congestion surcharge.
（4）Calculation of liner freight.
n Total Freight=Basic Freight + Additional Freight
n The formula of calculating the liner freight is：
F=Fb+=fQ+f（S1+S2+…+Sn）Q=fQ（1+S1+S2+…+Sn）
Fb—basic freight —surcharges f—the rate of the basic freight
Q—freight tonS—the rate of the surcharge
（5）Liner freight tariff in foreign trade can be divided into four kinds：
n Shipping conference freight tariff.
n Liner's company freight tariff.
n Cargo owner’s freight tariff.
•Freight tariff of both parties.
Tramps
A tramp（charter transport）is a freight-carrying vessel which has no regular route or schedule of sailings but trading in all parts of the world in search of cargo，primarily bulk shipments. Tramps usually refer to charter transportation，which can be classified into：
（1）Voyage charter transport.
（2）Time charter transport.
（3）Bareboat charter（demise charter）.
The freight of charter transportation is usually stipulated according to the tonnage of the ship and the freight rate on the current chartering market.[租船运费一般根据船级吨位和租船市场的运费行市条件而定。]Here are three methods of calculating the freight：tonnage of the goods loaded；tonnage of the goods unloaded；on the contract basis.
n Charter Party
A charter party is a contract signed between the ship owner and the charterer. It includes voyage charter party and time charter party. It involves the name of both parties and the vessel，flag，the cargo to be carried，the time of the charter，freight，loading and unloading charges，demurrage and the dispatch money，etc. It is especially important to stipulate who will bear the loading and unloading charges in the charter party.
n There are four ways to stipulate the loading and unloading charges：
n （1）Liner terms. The freight includes loading and unloading charges. The ship⁃owner shall be responsible for loading and unloading.
n （2）Free out. The freight includes loading charges. The ship⁃owner is responsible for loading.
n （3）Free in. The freight includes unloading charges. The ship⁃owner is responsible for unloading.
n （4）Free in and out. The ship⁃owner is neither responsible for loading nor for unloading.
4.1.2Land transport
n Land transport includes road transport and railway transport. Compared with railway transport，road transportation is flexible，cheap and speedy. Motor vehicles can go anywhere a road exists，while railway transport is limited to places on the line of the route；motor vehicles can go into the warehouse or factory for loading the goods and take them straight to the unloading point，while the goods transported by rail have to be collected by road from the sender，unloaded at the station and reloaded on to railway trucks；the roads are provided for all the road users and all that required is the capital cost of a vehicle and payment of its running costs，while it has to construct their own permanent way for railways；roads are faster than railways for short journeys，while railways are good for the transport of large quantities of heavy goods and faster than road transport over long journeys. On the other hand，there are some disadvantages of road transport.
n Rail transport can be divided into international combined rail transport and domestic rail transport.
n Under truck transportation，truck line issues a truck bill of lading，which is a non⁃negotiable document of title stating the point of origin，destination，consignee，and other pertinent information. Under railway transportation，railway carrier issues a railway bill，which is a receipt for the goods and a contract for the transportation. This waybill can be either clean or unclean，but generally speaking，it is not an acceptable title document on an export sale.
n 4.1.3Air transport
n Air transport（or airfreight）is a quick means of transportation. It is not restricted by the ground conditions. When speed is taken into consideration，this mode will be the most effective and swiftest delivery. Some valuable goods like furs，silks，art goods，fresh flowers and fashionable or seasonable articles that have short selling life are usually transported by air.
n Air transport services are divided into three types：scheduled airlines，chartered carriers and consolidated consignments.
n Scheduled airlines. Scheduled airlines are operated on schedules，over fixed airline and between fixed airports. They are suitable for transporting fresh，emergent and seasonal goods.
n Chartered carriers. Chartered carriers are the hire of an aircraft by a shipper or several shippers to deliver cargoes. They are ideal for carrying large quantities of cargoes or cargoes of different shippers to the same destination.
n Consolidated consignments. Consolidated consignments mean that the air freight forwarder usually assembles a number of individual shipments into one consignment and dispatches them on one air waybill. A consolidated shipment made up by several shipments can be dispatched to one common destination. Many shippers prefer this kind of shipment，as the freight rate is 7%~10% lower than that of a scheduled airline published by International Air Transport Association（IATA）.
n 4.1.4Pipelines
n Pipelines are special form of transportation mainly used to move gasoline，crude oil，and natural gas. Now it can move different petroleum products through a pipeline at the same time. Some solids have also been moved by pipeline. For example，the Cleveland Electric Company uses a great deal of coal. When the coal was ground into powder that was mixed with water to form slush，the slush was hydraulically moved through the pipeline from West Virginia to Cleveland，where it was dried and burned.
n 4.1.5Land bridge transport
n Land bridge transport can connect the ocean transport on the two sides of the land by the railways or roads which run across the continent. The mode uses the container as a medium. The two main land bridges in the world are the Siberian land bridge and the North American land bridge.
n 4.1.6Container transport
n In international cargo transport，container transport is a modern form of distributing merchandise in container and it is suitable for ocean，rail and multimodal transport. Goods transported by container include FCL（Full Container Load）and LCL（Less than Container Load）. Container transport has the following features：
n （1）Container transport offers a door⁃to⁃door service under FCL/FCL（Full Container Load/Full Container Load），door to container freight station（CFS）under FCL/LCL（Full Container Load/Less Container Load），CFS to CFS service under LCL/LCL，or CFS to door service under LCL/LCL conditions.
n （2）It can be handled quickly and easily by standardized equipment and can thus save labors and loading and unloading charges
n （3）The low risk of goods damage and pilferage enables more favorable cargo premiums to be obtained，compared with break⁃bulk cargo shipments.
n （4）Less packing is required for containerized consignments. In some cases，particularly with specialized ISO（International Standards Organization）containers such as refrigerated ones or tanks，no packing is required. This greatly saves cost in international transit and raises service quality.
n （5）Faster transits，coupled with more reliable maritime schedules，ultimately increase service frequency，produce savings in warehouse accommodation needs，lessen risks of obsolescent stock and speed up capital turnover.[运输速度快而且有可靠的海运日程表,这就提高了服务的效率,节约了仓储费用,降低了存货过时的风险,加快了资本的周转。 ]
n 4.1.7International multimodal transport
n International multimodal transport is a brand new mode of transport. It involves at least two modes of transport，such as Land⁃Sea，Land⁃Air，Sea⁃Air and TAT（Train⁃Air⁃Truck），on the basis of a multimodal transport contract，namely MT contract.
n The basic conditions of international multimodal transport are：
n •Transport documents，i.e.，combined transport documents shall cover the whole journey；
n •It includes two or more different modes of successive transportation；
n •It shall be international transportation；
n •The multimodal transport operator shall be responsible for the whole journey；
n •The whole journey shall use a single factor rate.
Questions
( 1 ) What is the difference between Liner and Tramp？
（2）Distinguish voyage charter，time charter and bareboat charter.
（3）Describe standards of calculating freight on liners.
（4）What are the features of container transport？
（5）How many types does air transport include？
（6）How many ways are used to stipulate who shall bear the loading and unloading charges in charter party.
Terminology practice
The following terms appeared in the text. Select one correct term for each of the following statements.
LinerCharter partyBareboat charterDemurrageLand bridge transport
（1）A contract concluded between the ship⁃owner and the charterer when the latter charters the ship or books shipping space from the former.
（2）The ship⁃owner only provides the charterer with a bareboat during the period of chartering.
（3）A vessel sails along a regular route and arrives on a stated schedule between specific ports.
（4）A mode of transportation that connects the ocean transport on the two sides of the land by the railway which runs across the continent.
（5）If the charterer cannot complete loading or unloading within the given time，he will have to pay the ship⁃owner a certain sum of fine.
4.2The shipment clauses
In international trade, most goods are transported by sea. Shipping clauses in sales contracts usually include time of shipment, port of shipment, port of destination, time of loading and unloading, partial shipment, transshipment, shipping documents and other relevant provisions.
4.2.1Time of shipment
During shipment of the goods，the obligations of the two parties in the contract are different according to the trade terms they used. When talking about the time of shipment，we should distinguish “shipment” from “delivery”. Under F and C group terms，e.g.，FOB，CFR and CIF，the time of shipment corresponds to the time of delivery，because FOB，CFR and CIF are with the trade terms of delivery on loading port，belonging to constructive or symbolic delivery. But under D terms，e.g.，DES and DEQ，they are quite different，for D terms belong to the actual or physical delivery，and they are trade terms of delivery at the named port of destination.
The time of shipment should not be too long or too short. Because the seller has to consider whether he can get the goods ready and complete the required formalities within the stipulated time. Buyers, on the other hand, have to consider the time required to prepare the payment, to process the import license and to receive the goods. In addition, in order to ensure timely shipment by the seller and opening L/C by the buyer in good time , the Seller shall stipulate in the contract that "the covering L/C must reach the seller not later than …”
Generally speaking，there are three ways to be used to stipulate the time of shipment in the contract.
• （1）Stipulate the definite or fixed date
e.g. Shipment at or before the end of March,2018
Shipment on or before Jan.15th .2018
Shipment not later than June 20th ,2018
• （2）Stipulate a fixed period of time.
• e.g. Shipment during July 2018
• Shipment during July and August 2018
• Shipment during second half of October
• （3）Shipment is to be made some days or months after receipt of the L/C
e.g. Shipment within 45 days after receipt of relevant L/C
This kind of clause is generally used for doing business with those customers who are not so credit worthy, or those who are in a country that has a policy of “license or quota for imports”. When such a clause is being made ,it is important to set a date on which the relevant L/C should be opened or reach the seller .Example in this regard is “the relevant L/C should be opened before June 15,2018”
According to the relevant stipulations of UCP 600,expression such as “prompt” , “immediately “as soon as possible “ and the “like “ should not be used ,banks will disregard them . Since there are no definite explanations to these expressions confusion or disputes may occur.
4.2.2Port of shipment and port of destination
n As the place of delivery concerns handling of formalities，payment of charges and transfer of risks，it is closely related to the trade terms and an indispensably component part of the terms. Usually the port of shipment is close to the origin of the goods，and it is chosen by the seller，however，it must be agreed by the buyer. The port of destination is usually proposed and determined by the buyer，which shall be convenient for taking the goods. Generally speaking，there are three ways of setting port of shipment and destination.
n （1）One port of shipment and one port of destination are set.
n E.g. Port of shipment :Tianjin. Port of Destination: London
n （2）Two or more ports of shipment and destination are stipulated in the contract.
n E.g. Port of shipment : Tianjin/Shanghai. Port of Destination: London / Liverpool
n （3）Optional ports are set. At the time of negotiation，if the port of shipment or destination is hard to decide，optional ports can be used，for example，CFR London，optional Hamburg/ Rotterdam.
n E.g. Port of destination :Glasgow. Optional Ports : London /Liverpool
When the “optional port” is adopted,the ports provided shall be in the same line.
The number of optional ports cannot be over three ports ,and the so-caused freight and additional cost are borne by the buyer .
n When deciding the port of destination or unloading port，we should pay more attention to the following points：
n （1）Do not choose a port in a country with which our government doesn'tpermit to do business.
n （2）The stipulation on the port of destination should be definite and clear. We�d better not use ambiguous terms，such as “European Main Ports”，“African Main Ports”.
n （3）If the goods have to be transferred，we should stipulate “transshipment allowed” in the contract.
n （4）The port of destination shall be the one at which the vessel may safely arrive and be always afloat.
n （5）We usually do not accept an inland city as a place of destination.
n 4.2.3Time of loading and unloading
n In international trade, most of bulk cargoes are shipped by charter.. Under voyage charter, the time of loading and unloading agreed between the ship and the charterer is termed ed "laydays". When the ship owner is free in and out, laydays are usually set down . If the charterer fails to finish loading and unloading the goods on time, he will be punished by paying a certain amount of money called demurrage to the ship owner ,, because the ship owner will suffer losses due to delays in loading and unloading; if the charterer completes the loading and unloading task ahead of time, the ship owner will give him money award called dispatch money. Dispatch money is usually half of demurrage . There are two ways to stipulate laydays: one is to fix a period of many days , such as 14 days to load , and the other is to stipulate the rate of loading and unloading, such as 1,000 metric tons per day. There are three methods for calculating days.
n Day or running day（Consecutive day）
n This refers to a calendar day of 24 consecutive hours，usually from midnight to midnight. When “days” are used to calculate laydays，the total laydays start from the date when the loading or unloading begins to the date when loading or unloading ends. The total laydays shall include Sundays，holidays and those days that are not suitable for loading or unloading（such as rainy days，snowy days）. So it is unfavorable to the charterer.
n Weather Working Day
n It refers to both working day and fine day. Sundays，holidays and bad weather days are not included.
n Weather working day of 24 hours
n This refers to a fine working day aggregating 24 hours. If the port follows the custom of working 8 hours a day，three days equal a weather working day. This is a term unfavorable to the ship owner.
n Weather working day of 24 consecutive hours
n This refers to a fine day of 24 consecutive hours excluding Sundays，holidays and bad weather days.
n E.g. Loading /Discharge Rate : 5000MT/10000MT PWWDSHEXC
n Demurrage:USD10000 per day or pro-rate for all time lost
n Dispatch Money: USD5000 per day or pro-rata for laytime saved
n 4.2.4Partial shipment and transshipment
n When partial shipment and transshipment are needed，they should be written down in the contract.
n Partial Shipment
n Partial shipment means that the shipment is made in several lots. In international trade practice，partial shipment is to be made because of large quantity of the transaction goods，the limitation of supplies or transportation. Partial shipment usually has three forms.
n •Not specify lots and quantity.
n This method is favourable to the seller because he can decide how much and when the goods are to be shipped based on the supplies of goods and the transportation conditions.
n E.g.Partial shipment to be allowed
n •Specify lots but not quantity.
e.g.Shipment during April ,May and June in three installments
n •Specify lots and quantity.
n This method is usually adopted when the buyer needs to resell the goods or hase some special requirements in use .This method strictly limits the seller .If he fails to ship the goods according to the stipulation ,the buyer reserves the right to claim against him.
n E.g. Shipment April, May, and June in three equal lots.
n Transshipment
n Transshipment should be clearly specified in the contract if it is necessary，such as “Transshipment to be allowed” or “Transshipment at Hong Kong to be allowed”.
n According to the relevant stipulations of the UCP600，unless the credit stipulates otherwise，partial shipment and transshipment are allowed. But contractual laws in some countries stipulate that：Partial shipment and transshipment，if not stipulated in the contract，shall not be deemed to be allowed. It，therefore，should be clearly stipulated in the relevant contract.
n 4.2.5Shipping advice
n When the goods are shipped on board the vessel，the seller needs to give the buyer prompt notice of the port of shipment，the date of sailing，the name of the carrying vessel，the estimated time of arrival and send the buyer the copies of the necessary documents to enable the buyer to get ready to take delivery of the goods. In the event of the seller failing to send shipping advice to the buyer within the prescribed time period，the seller would bear the consequential costs incurred. In the contract，the seller and buyer shall indicate the time and ways of sending out shipping advice.
n E.g. The seller shall dispatch the shipping advice ,indicating the contract No., name of commodity, invoice value , gross weight ,name of vessel and shipment date ,to the buyer within 2 days after loading the goods by fax or E-mail.
n Questions
n （1）What do we pay attention to when settling the port of destination？
n （2）Describe the methods of setting the time of shipment.
n Terminology practice
n The following terms appeared in the text. Select one correct term for each of the following statements.
n Symbolic deliveryPhysical deliveryPartial shipmentTransshipment
n （1）In marine transport，the movement of goods in transit from one carrier to another at the ports.
n （2）To make shipment in several lots by several carriers sailing on different dates.
n （3）The seller delivers the goods into the actual possession of the buyer，for example，delivery of the goods under EXW.
n （4）After the seller loads the goods on board the ship and presents the whole qualified documents，the seller is said to have finished delivery of the goods.
n Shipping documents are important documents in business transactions, which are issued by the carrier. It proves that the seller has fulfilled the delivery task stipulated in the contract or that the goods have been handed over to the carrier for taking over. Under symbolic delivery conditions, the seller needs shipping documents to settle the payment. According to different modes of transport, shipping documents include sea bill of lading, railway bill of lading, air bill of lading and international multimodal bill of lading.
n 4.3
n Shipping documents are important documents in business transactions, which are issued by the carrier. It proves that the seller has fulfilled his obligation of delivering contracted goods, or that the goods have been delivered in to the custody of the carrier .Under symbolic delivery conditions, the seller needs shipping documents to settle the payment.
n According to different modes of transport, shipping documents include ocean bill of lading, seaway bill, railway bill , airway bill ,and international multimodal transport document .
n 4.3.1Bill of lading
n Bill of lading is a document that is issued by a shipping company，a carrier or a ship⁃owner to a shipper，upon acceptance of goods for shipment. The form，provided by the shipping company，is filled in by the shippers as soon as they have all the details of the goods. Before shipment，it is sent to the ship where an officer of the shipping company checks whether the goods are “in good order and condition” and signs the bill when the goods are loaded over the ship’s rails. The consignment must be exactly as written on the bill and no difference. The cases should be undamaged and sacks should not be torn or stained. Drums of liquid should be dented or leaking .etc If there is any difference between the contents of the bill and actual conditions of the consignment, the shipping company has to write a clause on the bill describing the damages and losses.In 5this case ,the bill of lading is no longer a clean bill of lading and the bank may not accept it .Threefore the exporter should avoid the “foul” or “unclean” bill of ladingand make sure the goods arrive at the destination in good order and condition .
n Usually a bill of lading is made out in sets of three originals. The shipper may ask for several extra copies for his files. The negotiable bills of lading are title documents ,so who owns them has the legal right to the goods and obtain the goods from the carrier after making customs declaration .
n Functions of bill of lading
n Bill of lading serves three important purposes.
n As a contract for shipment between the carrier and shipper.
Bill of lading is an evidence of contract of carriage between carrier and shipper .The
contents of lading clearly stipulate the rights and obligations of the shipper and carrier. It is a legal evidence of settling disputes between them.
n As a receipt from the carrier for shipment.
Bill of lading is cargo receipt that shows the carrier has received the goods or takes over the goods.
n As a certificate of ownership or title to the goods.
The bills of lading can be used to transfer the good s from one owner to another .After the exporter competes the loading ,he can write the buyer’s name in the space of “consignee ” .This means the consignee is the legal owner of the goods , as named on the bill of lading .The exporter can write “to order” in the consignee space .Under “to order” he writes his own or the agent’s name and address. Then the agent in the importing country can endorse the bill to the buyer .In this way ,the exporter can transfer the consignment to his customers.
n Kinds of bill of lading（B/L）
n •According to whether there are notes on the bill of lading，it falls into clean bill of lading and unclean bill of lading or foul bill of lading.
n The clean bills of lading indicate that when the carrier receives the goods, the goods are properly packaged and in apparent good condition , and there are no defects on the surface of the package. This is no damage notation about the package and the appearance of the goods .
n Unclean bill of lading or foul bill of lading means the shipment is received in damaged
n condition .They are generally marked “insufficiently packed”, “covers old and stained” etc. These kinds of bill of lading are not acceptable to the banks for the negotiation under the L/C
n •According to whether the goods have been loaded on board the ship，it is divided into on board bill of lading（shipped bill of lading or shipped on board bill of lading）and received for shipment bill of lading
n On board bill of lading means that the goods have been actually loaded on board of the carrying ship .According to the foreihn trade practices, only the shipped bill of lading is accepted banks for payment under the L/C.
n Received for shipment bill of lading is an evidence given by the ship owner that the goods have been received for shipment but have not yet actually loaded on a particular ship.
n •According to whether the bill of lading is transferable，it is divided into straight bill of lading and order bill of lading.
n Straight bill of lading has a specified name in the column of consignee of the bill Only the named consignee at the destination is entitled to to take the delivery of the goods under the bill The consignee is designated by the shipper.
n Order bill of lading can be transferred to others after endorsement .If the shipper does not endorse such a bill, he receives the right to dispose the goods to himself .
n •According to the modes of transport，it is classified into direct B/L，transshipment B/L and through bill of lading.
n Direct B/L is an evidence that goods are shipped and carried by the steamer and transported from the port of loading directly to the port of destination without transshipment during the voyage. The buyer usually prefers such a bill ,because the possible cargo damages or losses are usually caused by transshipment .
n Transshipment B/L is a document issued by shipping companies when there is no direct service between two ports.
n A through B/L is issued when the entire voyage involves more than one carrier .The first carrier issues the bill and collects the freight for the entire voyage ,and arranges transshipment and forwarding of goods at the intermediate port.
n According to the contents of bill of lading，it is classified into long form B/L and short form B/L.
n Long form bill of lading is more detailed with shipping contract clause printed on the back of the pages
n Short form B/L is an abbreviation document ,not containing the long list of detailed clauses that generally appear on the bill of lading .
n According to the time of issuance of bill of lading, it is classified into stale B/L, ante-dated B/L and advanced B/l
n Overdue Bills of Lading (Stale B/L)
n An overdue bill of lading has two meanings. One is to point out that the exporter delayed the shipment for a long time before the bill of lading was delivered to the bank for negotiation. According to Article 42 of the 1993 Revision of the Uniform Customs and Practices for Documentary Credits published by the International Chamber of Commerce No. 500, "If there is no special provision in the letter of credit, banks will refuse to accept documents submitted after the date of issuance of the transport document exceeds 21 days." In any case, the presentation of documents shall not be later than the expiration date of the L/C." Second, the bill of lading is later than the arrival of the goods at the port of destination. This kind of bill of lading is also called overdue bill of lading. Therefore, the trade contracts of the offshore countries generally stipulate the clause that "overdue bills of lading are acceptable" (Stale B/L is acceptance).
n Ante-dated B/L means that the actual date of shipment of the goods is later than the date of shipment stipulated in the letter of credit. If this happens in L/C payment ，the shipper can not have the L/C negotiated . In order to make the date of issuance of the bill of lading coincide with the date of shipment stipulated in the letter of credit and facilitate the settlement of L/C, the carrier shall, at the request of the shipper, will issue a B/L with the date of shipment of the letter of credit in order to avoid breach of contract. But due to the risk of the goods being rejected by rhe buyer arising from the issuance of such a bill, it is advisable to avoid this malpractice even when it seems necessary in certaincircumtance
n Advanced B/L
n Advanced Bill of Lading is issued when the expiry date of the L/C is due ,but the shipper fails to prepare the goods in time or delay the shipment. The purpose of issuing such a bill is to negotiate the L/C with the bank in time within the validity of the L/C. It is regarded as illegal and risky and should be avoided.
n Other types of the B/L
Charter party B/L. When transporting bulk cargo by voyage charter, in order to clarify the rights and obligations of both parties, the shipper and the cargo party must first conclude a voyage charter party. After loading the cargo, the charterer requests the ship or its agent to issue a bill of lading, which is the bill of lading under the Charter party
n
n Freight Prepaid B/L
n
n The CIF and CFR price conditions are freight prepayment. When the goods are shipped according to the regulations, freight must be prepaid. The bill of lading issued in the case of freight prepayment is called freight prepaid bill of lading. The bill of lading has the words "freight prepaid" on the front, and the bill of lading can only be obtained after the freight is paid; if the goods are lost after payment, the freight will not be refunded.
n
Freihgt to Collect B/L
n
n Freight Payable at destination is charged to goods traded on FOB terms, whether they are booked by the buyer or by the seller entrusted by the buyer, and the words "Freight Payable at destinaiion" are stated on the bill of lading, which is called "Freight Payable to Pay Bill of Lading". When the goods arrive at the destination port, they can only be delivered by paying the freight.
n House B/L
n House B/L refers to the bill of lading issued by the transport agent. In shipping practice, in order to save costs and simplify procedures, sometimes the transport agent concentrates the sporadic goods shipped by different shippers on a set of bills of lading, while the carrier issues group bills of lading to the transport agents. Because there is only one set of bills of lading, each shipper can not obtain the bill of lading separately, so the transport agent has to do so. To issue bills of lading to shippers on behalf of transport agents (banks). Due to the development of container transportation, the use of such bills of lading for container cargo organized by transport agents is conducive to improving efficiency, so the use of such bills of lading is expanding.
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n 4.3.1Bill of lading
n Chief contents of B/L
n Different shipping companies have different forms of B/L，but the basic contents are as follows：
n •Consignor（shipper），generally the exporter.
n •Consignee. This column should be filled in according to the instructions of the relevant L/C.
n •Party to be notified. This party is usually the consignee.
n •Name of the vessel，its nationality and voyage number.
n •Port of shipment and port of destination.
n •Freight. Under CIF and CFR，freight is prepaid，while under FOB，freight is to be collected.
n Chief contents of B/L
n •Number of the copies of the B/L，signature of the ship⁃owner or his agent or captain of the vessel.
n •Main particulars concerning the goods loaded on the vessel，including description，shipping marks，number of packages，gross weight or measurement，etc.
n •Place & date of issue.
n •Other clauses on back of the B/L.
n 4.3.2 Seaway bill
n Seaway bill is a receipt for the goods issued by the carrier. It is also the evidence of contract of carriage. But it is not the document of title to goods. It is not negotiable.
n In international trade，sometimes the goods have arrived at the port of destination，while the documents are delayed owing to the short voyage or the long time in handling documents on the part of the bank. Without the B/L，the consignee shall not be able to take delivery of the goods. The use of seaway bill will be more convenient to the consignee.
n 4.3.3Railway bill
n The railway bill is the transportation contract and binding upon the consignee，the consignor and the railway department. The railway bill is not an acceptable title document. The railway bill together with the goods is transported from the place of dispatch to the place of destination and then is delivered to the consignee after he has paid off the freight and other charges. The consignor may make exchange settlement with the bank against the duplicate of railway bill.
n 4.3.4Airway bill
n The airway bill is a document supplied by the carrier to the consignor. It is a transport contract signed between the consignor and the carrier. The airway bill is not a title document and cannot be negotiated. After the goods have arrived at the place of destination，the consignee may take delivery of the goods against the advice of arrival given by the carrier. Airway bill is classified into master airway bill and house airway bill. Master airway bill is issued by the airline and house airway bill is issued by the air freight forwarder. Generally airway bills are made out in three originals. Normally the exporter would retain No.1 original，No. 2 would be retained by the airline and No. 3 would automatically go forward with the consignment to the consignee at the destination point.
n 4.3.5Multimodal transport document
n Multimodal transport document is a document which evidences the combined transport contract and indicates that the multimodal transport operator shall take over the goods and shall be responsible for delivering the goods according to the clauses in the contract.
n The differences between an M.T.D. and a through B/L are as follows：
n （1）A through B/L is restricted to the combination of ocean transport with other modes of transportation；while an M.T.D. can be used either in combined transport of ocean and other modes or in the combination of modes of transport excluding ocean transport，but it shall include two or more different modes of transportation.
n （2）A through B/L is issued by the carrier；while an M.T.D. is issued by the multimodal transport operator.
n （3）The issuer of a through B/L is only responsible for the first journey；while the issuer of an M.T.D. should be responsible for the whole journey.
n （4）A through B/L is a whole journey B/L issued by the first carrier after the goods have been loaded on board the vessel，and it is a shipped，on board B/L；while an M.T.D. may be a shipped on board B/L，but in most cases it is a received for shipment document.
n Questions
n （1）What is B/L？ What are the functions of B/L？
n （2）State some of the important items to be noted on B/L.
n Terminology practice
n The following terms appeared in the text. Select one correct term for each of the following statement.
n Straight B/LOn Board B/LOcean B/LOrder B/LShipping document
n （1）The document for marine transport，which is a receipt from the shipping company or its agent，giving details of a particular shipment.
n （2）The bill of lading can be transferred to others after endorsement.
n （3）The bill has a specified name in the column of consignee of the bill. Only the named consignee at the destination is entitled to take delivery of the goods under the bill.
n （4）The B/L proves that the goods have been loaded on board a certain ship.
n （5）A kind of main certificate，which proves that the seller has completed his obligation of delivering the contracted goods.
n 4.4 Key words，phrases and special terms
n Actual or physical delivery实际交货
n Advanced B/L预借提单
n Air freight forwarder航空货运代理公司
n Ante⁃date B/L倒签提单
n Bareboat charter 光船租船，净船期租船
n Bill of lading（B/L）提单
n Capabilityn. 能力，性能
n Cargo Owner�s Freight Tariff 货方运价表
n Chartered airline包机运输
n Charter Party 租船合同
n Clean B/L 清洁提单
n Clean on board B/L已装船清洁提单
n Consigneen.收货人
n Consignorn. 发货人
n Consolidated consignments集中托运
n Constructive or symbolic delivery 推定交货或象征性交货
n Demurragen. 滞期费
n Devoidadj. 全无的， 缺乏的
n Dispatch money速遣费
n Deployv. 调动，配置
n Disposen. v. 处理
n Endorsementn. 背书，签注（文件）
n FCL（Full Container Load）整箱货
n Formalityn. 正式手续
n Freight Tariff of Both Parties 双方运价表
n Gross Terms管装管卸
n Heavy Lift Additional 重件附加费
n Hydraulicallyadv. 水力地， 水压地
n Indispensablyadv. 不可缺少地， 绝对必要地
n Land Bridge Transport （大）陆桥运输
n Laydaysn.停泊期，受载期
n LCL（Less than Container Load）拼箱货
n Liner�s Company Freight Tariff 班轮公司运价表
n Liquefied Gas Carrier液化汽船
n On Board B/L 已装船提单
n Long form B/L全式提单
n On deck B/L舱面提单
n Order B/L 指示提单
n Optioned port 选择港
n Over Length Additional 超长度附加费
n Partial shipment 分批装运
n Pertinentadj.有关的
n Received for Shipment B/L 备运提单，收讫待运提单
n Scheduled airlines班机运输
n Seaworthinessn. 适于航海， 适航性
n Shipping Conference Freight Tariff 航运公会运价表
n Short form B/L略式提单，简式提单
n Stale B/L过期提单
n Straight B/L 直交提单，记名提单
n Successiveadj.连续的
n Tank Cleaning Charge 清洗油缸费
n Transshipmentn. 转船
n Tariffn. 运价表，关税
n Time charter 定期租船，期租船
n Voyage charter 定程租船，程租船，航次租船
n Unclean B/L 不清洁提单
n
4.5 Basic Skill Practice
