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    • Part 4 The Bill of Lading
    • Part 5 Responsibilities under Charterparties
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Part 5 Responsibilities under Charterparties

Carriage of Steel Cargoes

 

Types of contracts
In addition to the Bill of Lading (which evidences the contract of carriage between the carrier and the cargo interests), there will often be a Time Charterparty or a Voyage Charterparty, or both.

The Owner's obligations under the Hague or Hague-Visby Rules
The Bill of Lading will usually be subject to the Hague or Hague-Visby Rules. These Rules will also often be incorporated in a Time Charterparty or Voyage Charterparty by means of a Paramount Clause. Under the Hague or Hague-Visby Rules, the Carrier, Owner or Disponent Owner has an obligation, before and at the beginning of each voyage, to exercise due diligence (that is, reasonable care) to make the vessel seaworthy. For these purposes, a vessel is not seaworthy if she is not cargoworthy. In addition, the Rules impose a general obligation properly and carefully to load, handle, stow, carry, keep, care for and discharge the cargo.

Loading, stowage and discharging operations
Time Charterparties
However, under most unamended Time Charterparty forms, it is the Charterer (rather than the Owner) who is primarily responsible for loading, stowing and discharging the cargo. Nevertheless, the Master is always entitled to supervise those operations and there may be certain situations where responsibility shifts back to Owners (for example, where the Master negligently intervenes in the operations or where there is a problem, such as stability, which is particularly within the province of the Master). It is, however, not unusual for Charterparties to be amended to make the Master responsible for loading, stowage and discharge operations and, in those cases, the responsibility is transferred, even where the stevedores are engaged by the Charterer.

The NYPE Inter-Club Agreement
The position with regard to cargo claims is simplified under the NYPE form Charterparty, if the contract incorporates the Inter-Club Agreement. Where this Agreement is incorporated into the charter, the general rule is that the Owner will be 100% responsible for claims arising out of the vessel's unseaworthiness (or an error or fault in the navigation of the vessel), the Charterers will be 100% responsible for claims arising out of cargo handling (unless the charterparty is amended to make these matters the Master's responsibility, in which case responsibility is apportioned on a 50/50 basis), and shortdelivery and other claims will be apportioned on a 50/50 basis.

Voyage Charterparties
Under a Voyage Charterparty the Charterer will be primarily responsible for loading, stowage and discharging, if the contract provides for FIOS terms. If, however, the contract provides for liner terms, then Owners will be primarily responsible for these operations.

Conclusion
The above is a general description of the parties' obligations under Charterparties, but in the event of a dispute or disagreement, it is essential to contact the Club (either directly or through its Correspondents). Complex disputes and problems can arise out of the carriage of steel cargoes. The Club has a vast array of technical and legal advice at its disposal, not only to assist after a claim has arisen, but to assist in the prevention of claims. In the event of uncertainty as to what should be done, the Member should contact the Club. Skuld is there to help, as part of the Member's team. 

 

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