Chapter 6 Shipment

6.1 Modes of Transport

6.1.1 Ocean Transport

6.1.1.1 Liner Transport

（1）Meaning of Liner Transport/Liner Shipping

Liner Transport/Liner Shipping: Cargo and/or passenger carrying shipping line operating a liner scheduled service between fixed points（ports）on a trade route. In this type of shipping, the freight rates are fixed and mainly associated with containers/cruise/passengers. Liner schedule will be announced before the shipment. Small retailer can also participate with his customers consignment.

（2）The Calculation of Freight

The more interesting thing is the fee of liner transport during the shipping. The formulas as follows can be used to calculate:

Total Fee = fee of transportation + additional fee

Total fee =basic fee × Basic rate + additional fee

Total fee =basic fee × tone（1+additional fee rate）

The following sections will explain the contents of the fee, including the basic and additional fee. Procedures of calculation are as follows: first, find the rate and classification of goods in the list of cargo（goods）, and the standard fee; second, with the criterions of fee, find basic freight rate in the liner fee table; third, find the additional fee（maybe it's a rate based on the tone）; finally, calculate the total fee.

（3）Standards of Collecting Basic Freight Rates

Generally, there are eight different criterions to calculate basic freight.

（a）Criterion of fee by Weight: “W”: the fee of liner transport is calculated by the weight brut with a sign“W”. The following formulas can convert among the different measurements.1 ton=1,000kg = 2,205lb = 1.102 short ton = 0.984 long ton

1 short ton = 0.907t 1 long ton =1.016t 1 ton=1,016kg（Br）or 907.2kg（US）

（Note: Br/US represent Britain and the United States criterions, respectively.）

Normally, the measurement of weight is with TWO DECIMAL POINTS

（b）Criterion of fee by Measurement: “M”. The fee of liner transport can be calculated by measurement, using“M”which represents the Measurement, usually 1 cubic meter and 40 cubic feet.

（c）Criterion of fee by both of above: Weight or Measurement（W/M）. For example: if 1 ton of goods exceeds 1 cubic meter or 40 cubic feet, the fee is calculated by volume; if not, calculated by weight.

（d）Criterion of fee by value of goods（ad valorem）: this criterion normally uses for the goods with high value. The fee depends on the value of goods and calculated by the percentage of value.

（e）Criterion of fee by the high fee: using this criterion, the fee based on the high value among the weight, measurement and value method, which is marked as W/M or AV. The fee is the higher fee calculated with the method weight and measurement, plus some add value of goods, marked as W/M plus AV.

（f）Criterion of fee by the number of goods: this criterion is usually for train and vans （per unit）. For example: cattle, sheep（per head）.

（g）Criterion of fee by Open rate（negotiation price）: the price can be negotiated. For example: Grain, beans, coal, ores etc.

（h）Minimum Rate: if the fee calculated by the methods above is below the minimum fee in the table of fee, the fee of transport is the minimum fee.

（4）Additional Fee

Moreover, additional fee is also a part of total fee of liner shipping. Some special rules must have mentioned. First is the high fee rule: If there are Mix-goods, the fee is calculated by the high fee goods. The fee is different when the same goods with different package, also count the fee with the high fee goods. If there are two or more than two goods on the same bill of lading, also count the fee with the high fee goods. Then, there are other types of additional fees:Over Weight Surcharge, Over Length Surcharge, Bunker Adjustment Factor or Bunker Surcharge, Port Surcharge, Port Congestion Surcharge, Direct Additional, Deviation Surcharge and Transshipment Surcharge, Additional for Optional Destination, etc. Normally, additional fee is calculated based on the basic fee or each tone of goods has a rate.

6.1.1.2 Charter Transport

（1）The Meaning of Charter Transport

Charter transport is a tramp shipping, as the liner shipping（No schedule; no fixed line and Port of call）, which arrange the shipping with the client requests and arrange the Charter shipping（Ship, line, schedule, etc.）with the contracts between the shippers and carriers;and the charters and carriers.

（2）The Types of Charter Transport

（a）Voyage charter: Carriers rent the space of ship from the ship-owner, whole or a part of shipment. Transport is among the designated ports. It can be a single trip, a round-trip or a multi-trip. For the costs of loading and unloading, there are different ways as follows: FREE OUT（FO）-Cost of loading Borne by the charterer; FREE IN（FI）-Cost of unloading Borne by the charterer; FREE IN AND OUT（FIO）-Cost of Loading and Unloading not Borne by the charterer; FREE IN AND OUT STOWED（FIOST）-Charterer doesn't bear the expenses of loading, stowing and discharging.

（b）Time charter means renting a period of ship for transportation. The ship is managed, deployed and used by the chartered. The ship-owner should bear the wages and board expenses of the crew and be responsible for seaworthiness during the period of chartering and the so caused expenses and the vessel insurance premium. Carrier has the command of captain, crewman, also can replace someone in the ship to do a series of work, such as loading, unloading, stowing and trimming and the so caused fuel expenses, port expenses, loading and unloading expenses etc. should borne by the carriers. Fee of charter is based on the Dwt, Time, Rental rates. Rules for delivery and rent ships have to write in the rental contract.

（c）Bare boat charter（BBC）: The ship-owner just rents the ship to the carrier, without any employee of the ship（captain, crewman, sailor, etc.）. Carriers must pay the rent. The ship-owner just rents a ship which can finish this transportation mission, no responsibility for management of transportation. Carriers must find all the crew of ship and the command. Carriers must manage transport and dispatch operation, and pay the variable fees: fuel expenses, port expenses, pilot fees, canal costs, etc. The ship-owner has to pay material fee, lubricants fee, insurance of ship, repair cost. Fee of charter is based on the Dwt, Time, Rental rates. Rules for delivery and rent ships have to write in the rental contract.

6.1.2 Rail Transport

6.1.2.1 The Features of Rail Transport

Rail transportation is in two countries or more than two countries without changing the transport documents. The transshipment is between two countries without shippers and consignees. The rail transports have to follow some general international documents and rules: Agreement on International Railroad through Transport of Goods; International Rail Intermodal Freight Transport Unified Transit Tariff Regulations-Unified the Prices of Goods; Rail National Agreements, for Two Neighboring Countries, Agreements on Rules for the International Railway Cargo Transport; Agreement on Rules for the Use of Coaches in International Traffic;Railway Freight Rate Rules.

6.1.2.2 The Types of Rail Transport

（1）International Combined Rail Transport

For the transport of goods in international combined rail transport, first makes monthly transport plan for the full Truckload（TL）shipment, but not necessary for the Less Than Truckload（LTL）. Then, the consignment and carriage must follow the Agreement on International Railroad through Transport of Goods. Finally, it's the hand-over in the International station. The process of exportation by railway is: announce Customs（before arrival）; receipt of consignment; and re-shipping

（2）Domestic Rail Transport

Domestic railway transport refers to goods transport within the country in accordance with the regulations for transportation of domestic railway goods. It also includes the transport for the exportation to the port and importation from the port in the domestic country.

6.1.3 Air Transport

6.1.3.1 Benefits of Air Transport

（1）Faster delivery: Maybe a short transit time and fast delivery are important for some transport, the first choice is air transport. While air transport may deliver the goods in a day or two, a freighter will usually take a month（should there be no delays）.

（2）Better security: In Air transport, goods will have the least risk of getting damaged or destroyed in any way. Sure, there is always the risk that the plane will crash, but, those risks are minimal. When it comes to handling, storing and securing your package, airport regulations take very good care of that. There are strict rules that have to be followed when handling goods.

（3）Simple procedure: Normally, the international freight forwarding agent provides the“Door to Door”service, which is more simply and fast for the shippers and carriers.

（4）Save packaging staples, expenses of insurance and storage. Because of the characters of air transport is fast and safe, it doesn't need over package and expenses of insurance and storage.

（5）Save cost. Surely you must have realized by now that taking the fastest and the safest mode of freight comes with a price. To make the best decision, it helps to be educated about how carriers charge for international shipping. Airlines bill you by what is called a chargeable weight. Chargeable weight is calculated from a combination of the weight and size of a shipment.

6.1.3.2 Types of Air Transport Services

（1）Scheduled airline is airline and scheduled fix, from the Departure Station to the Transfer Station, then to the destination station.

（2）Chartered carriers transport include the full air charter service and less-than-charter service. For the full air charter service, shippers can rent a full flight. There are one or multi stations to destination station. For the less-than-charter service, there are multi-owners. Shipper can rent the multi-agents or companies.

（3）Consolidation transport combining cargo of many consignees into one lot and then prepare it for shipping is better known as consolidation transport in the freight industry.

（4）Air express service is a mode of transportation with an airline. Package transport service using airlines but distinct from airfreight because of special scheduling, handling, billing, pickup, and delivery.

6.1.4 Road Transport

Road transport means transportation of goods from one place to the other on roads. Road is a route between two destinations, which has been either paved or worked on to enable transportation by way of motorized and non-motorized carriages. There are many advantages of road transport in comparison to other means of transport. The investment required in road transport is very less compared to other modes of transport such as railways and air transport. The cost of construction, operating cost and maintaining roads is cheaper than that of the railways. Main line for the highway transportation of China are China and Russia, China and Korea, China and Mongolia, China and Burma, China and Vietnam, China and Laos, China and Pakistan, China and Kazakhstan, China and Kyrgyzstan, China and Nepal, China and Bhutan, China and India, etc.

6.1.5 Inland Waterway Transport

The inland waterway transport uses the inland rivers, lakes or the sea port to transport to other countries, especially for: ore, gain, fertilizer, coal, petrol, etc. The low cost is the advantages of this transport. However, it is not for the goods in time because of slow speed. Cargo ship /Sea ship, Barge carrier, Barge without power are usually used for the inland waterway transport.

6.1.6 International Multimodal Transport

International multimodal transport is the transportation of goods under a single contract but performed with at least two different means of transport, which optimizes the international transportation. There are different forms such as Transport by rail and sea, Land Bridge Service, Air&sea multi transportation.

6.1.7 Parcel Post Transport

Parcel post transport is an international multimodal transportation. Through two or more than two countries'post with two or more than two transport modes. Their characteristics are extensive international, multimodal transportation with different countries, Door to Door. Postal rules（light, small, volume）are different with different goods, for example: precise instruments, machine parts, gold and silver ornaments, medicine, small items; nor for large quantities of goods.

The Universal Postal Union（Postal Union）is the most important international postal organization for changer the mail and parcel, which improves the international postal service and development and promotes advanced experience and technical support for the members.

6.1.8 Pipeline Transportation

The pipeline transportation uses the pipeline to transport the gas, liquid and powder solids, which has strong relationship with the industry, petrol and gas industry. Service 24/24 and 7/7, No package, Less damage or loss, Simple way, No empty back, Simple management, Low cost are the advantages of this transportation mode. We also should pay attention to the disadvantages: One goods-just for one goods, No increase the volume of transportation, Connect with other transportation, Maintenance and maintenance costs.

6.1.9 Container Transport（Containerization）

6.1.9.1 The Virtue of Containerization

Containerization is a system of intermodal freight transport using intermodal containers（also called shipping containers and ISO containers）. The containers have standardized dimensions. They can be easily loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another without being opened. The handling system is completely mechanized so that all handling is done with cranes and special forklift trucks. All containers are numbered and tracked using computerized systems. Advantage of containerization are Standardized rules, Cost due to loss or damage are reduced, Lower labor costs in freight handling due to the using of automated materials handling equipment, Lower warehousing & transportation costs since containers are more easily stored and transported, containers can also be used for temporary storage at ports with limited warehousing facilities.

6.1.9.2 Modes of Container Service

（1）CY / CY: Container Yard to Container Yard. Container Yard is a place within a port or terminal where containers are stored before it is loaded on the ship in the case of exports or offloaded from the ship in the case of imports. In such cases, if the notation of CY/CY is present on the bill of lading, the shipper/consignee will be responsible for any movement, costs or risks before the container is delivered to the carrier at the CY or picked up from the CY.

（2）CY/CFS is Container Yard to Container Freight Station. Shipping term means that goods will be packed into container（s）by the carrier at the port of origin at carrier's risk and expense and will be unpacked at a place off carrier's premises at the port of destination by the consignee at own risk and expense.

（3）CFS/CY is Container Freight Station to Container Yard.

（4）CFS/CFS is Container Freight Station to another Container Freight Station.

6.2 Shipment Clause

Shipment clause usually covers time of shipment, port（place）of shipment and destination, partial shipment and transshipment, etc.

6.2.1 Time of Shipment

As previously noted, INCOTERMS 2010 provides that in FOB, CFR, CIF, FCA, CPT, CIP contract, the seller fulfills its obligation of delivery when the goods are shipped on board the vessel or delivered to the carrier. All these contracts are shipment contracts. As such, in these contracts the time of shipment is the equivalent of the time of delivery. The time of shipment is a very important condition contained in the shipment clause in a contract. Any delay or advance of delivery constitutes violation of contract.

There are mainly two ways of stipulating time of delivery in contract.1）Time of shipment definitely stated. For example: Shipment during December 2019. 2）shipment within ×× days after receipt of L/C. For a contract in which payment is made by L/C, in order to avoid the risks of losses resulted from the buyer's failure in opening L/C, or for the purpose of making use of L/C as a means of financing preparation for goods, the seller would like to stipulate the time of delivery in this way.

6.2.2 Port of Shipment and Port of Destination

Generally, the contract defines one port of shipment and one port of destination. But sometimes more than two ports may be specified. If the port（s）of shipment or destination can't be defined definitely when the contract is concluded, optional ports like EMPs which stand for European Main Ports, AMPs which stand for African Main ports may also be adopted. In such cases, the contract should specify:1）Which ports are EMPs and AMPs; 2）Any additional freight incurred will be on the buyer's account;3）The buyer should notify the seller of the final port when opening L/C.

6.2.3 Partial Shipments and Transshipment

6.2.3.1 Partial Shipments

Partial shipments, also described as shipment by installments, mean the goods in one contract are to be shipped in lots. In international trade, sometimes partial shipments have to be made because of large quantity of the transaction, or the limitation of supplies and transaction. If no such clause is stated in the contract, partial shipments are construed as not allowed. But some international rules stipulate oppositely, for example, UCP 600 provides that partial drawings and/or shipments are allowed. In view of the above differences, it is advisable to make it clear in the contract as to whether partial shipments are allowed or not allowed.

（1）Simply State that Partial Shipments are Allowed

The exact time of delivery, the quantity of each lot and the total lots are not stipulated in the contract. This way of stipulation is favorable to the seller since the seller has option on the quantity and the time of delivery of each lot considering the supplies available and the transportation conditions.

（2）State the Specific Time of Delivery and Quantity of each lot

For instance, shipment from March to June in four equal monthly lots. This way is usually adopted when the buyer needs to resell the goods or has some special requirements in use. If the seller fails to carry out any of the lots, it shall be responsible for breaching the contract.

Art. 31 in UCP 600 provides that transportation documents which appear on their face to indicate that shipment has been made on the same means of conveyance（and for the same journey）, provided they indicate the same destination, will not be regarded as covering partial shipments, even the transport documents indicate different dates of shipment and/or different ports of loading.

6.2.3.2 Transshipment

According to the UCP 600, transshipment means a transfer and reloading during the course of carriage from one conveyance or vessel to another conveyance or vessel, within the same mode of transport or from one mode of transport to another mode of transportation. Unless transshipment is prohibited by the terms of the credit, it is allowed. However, in the absence of terms as to whether transshipment is allowed or not in the contract, transshipment is to be construed as not allowed.

6.2.4 Shipping Advice

Letter or form sent by an exporter to a foreign buyer informing that the shipment of the ordered goods is on its way. A copy of the invoice and the packing slip（and sometimes a copy of bill of lading）may also be attached. Also called advice note.

6.2.5 Lay Days, Dispatch Money and Demurrage

In the case of voyage charter, the loading and unloading time of cargo affects the time of charter of the ship and the cost at port, which is directly related to benefice of the ship. Therefore, it is necessary to stipulate reward or punishment measures to urge the charterer to load and unload the cargo quickly.

Loading and unloading time refers to the charterer's commitment to complete the loading and unloading operations within a certain period. Loading and unloading time is directly related to the turnover of the ship and the operating cost of the lessor. Therefore, it is an important content in the voyage charter ship contract. The time of loading and unloading may be expressed for several days. It can also be expressed by the rate of loading and unloading, such as an average of several tons per day. In addition, it should count as working days, and which days are excluded. The calculation of loading and unloading time is generally as follows:

6.2.5.1 Lay Days

（1）Running days: It can be counted by day or continuous day or hour. It means the continuous full of time 24 hours count as one day or consecutive days.

（2）Working days: It is to point to by port custom, belong to the day of normal work.

（3）Weather working days refers to the working day, but also suitable for loading and unloading of the weather before the calculation of loading and unloading time. Suitable for loading and unloading depends on the nature of the cargo and whether loading and unloading in bad weather affects the quality of the cargo（Weather working days of 24 hours）.

（4）Weather working days of 24 hours: This clause is the same as the working day on sunny days, but it specifies 24 hours of continuous clock movement during the weather suitable working day. Working days are usually prescribed except Sunday and public holiday（Sundays and holidays excepted）. Also, it shows that, to be clear, Sunday and public holiday homework, calculating do not calculate loading and unloading time, namely except Sundays, holidays, even if has been used is not（Sundays and holidays excepted even if used）or Sunday and public holiday in addition to the users have not（Sundays and holidays excepted unless used）.

6.2.5.2 Dispatch Money and Demurrage

It is paid by the ship owner to the charterer because of the vessel completing loading or discharging before the stipulated time. It is a penalty to be paid by the charter to the ship owner for exceeding lay days in loading or unloading. If the charterer fails to complete the loading and unloading operation within the specified time limit. In order to make up for the loss, the charterer shall pay a fine to the ship in excess of time. This penalty is called demurrage. If the charterer completes the loading and unloading operations in advance within the specified time limit, the ship shall pay a certain bonus to the charterer for the time saved. The bonus is called dispatch money. The latter is generally half of the former.

6.3 Major Shipping Document

6.3.1 Bill of Lading（B/L）

The bill of lading is a required document to move a freight shipment. The bill of lading （B/L）works as a receipt of freight services, a contract between a freight carrier and shipper and a document of title. The bill of lading is a legally binding document providing the driver and the carrier all the details needed to process the freight shipment and invoice it correctly.

In this section, we will study different types and functions of the B/L.

6.3.1.1 Types of the B/L

（1）Shipped（on board）B/L and Received for shipment B/L: Shipped（onboard）B/L is a bill of lading certifying that the goods have been received in good order and in a good con dition from the shipper and have been put aboard the right vessel on the right date. This is definite proof that the container（s）have been loaded. The received for shipment B/L confirms that the carrier has“received”the containers at the port facility for loading onto a specific ship or voyage. This does not mean that the container（s）have been shipped on board.

（2）Clean B/L and Unclean B/L: Clean B/L is a bill of lading that is predominantly used for non-containerized cargoes that are loaded on the break-bulk or multi-purpose vessels. This confirms that the cargo has been received by the carrier in good order and condition.

Unclean B/L is a document showing the details of the products sent from a seller to a buyer that states either the products or their containers are damaged: An unclean bill of lading is issued when it is determined that the packages are not in their original condition.

（3）Straight B/L, Short Form B/L and Order B/L: Straight bill of lading is a non-negotiable bill of lading. It is used where the goods have been paid for or do not require payment such as donations or gifts. Under this bill of lading, the shipping company will deliver the shipment to its consignee on presentation of identification. A short form bill of lading（also known as blank back bill of lading）is one where the Terms and Conditions of carriage is not printed on the revers. Order bill of lading is the opposite from a straight bill of lading and there is no specific or named consignee. Therefore, an order bill of lading can be negotiated to a third party.

（4）Direct B/L, Transshipment B/L and Through B/L: Direct bill of lading is used when you know the same vessel that picked up the cargo will deliver it to its final destination. When transshipping goods, a bill of lading is issued by the vessel owner or his agent who transship the goods. This is called“transshipment bill of lading”. The cargo is transshipped from the intermediate port. In such cases, all transshipment expenses are met by ship owner or his agent, who accepted the goods at port of loading. A through bill of lading is a legal document that allows for the transportation of goods both within domestic borders and through international shipment.

（5）Liner B/L, Charter party B/L, Container B/L: Liner B/L is a bill of lading under which the carrier is responsible for loading, stowing and discharging the cargo. ... received for shipment bill of lading—a bill of lading which records receipt of the goods by the carrier at a time prior to that at which they are loaded onto the carrying vessel. Charter party B/L is subject to a Charter Party, or an agreement between a charterer and a vessel owner. The CPBL is issued by the charterer of the vessel to the shipper for the goods being shipped on board the vessel. Container B/L: a document that gives information about the goods being transported in a container or containers from one port to another: The container shipping line issues a container bill of lading to the exporter in respect of his cargo.

（6）Original B/L is a physical paper document of a straight bill of lading or order bill of lading issued to the shipper at the port of lading by the carrier. When the freight is laden on board the shipper will just receive a copy of the bill of lading for their reference. The shipper is not required to surrender anything back to the shipping company and neither is the importer, so freight is released as soon as it is available.

（7）On deck B/L refers to an ocean bill of lading containing the notation that the goods have been loaded on the deck of the vessel. When a cargo is placed on the deck of a ship for delivery, an on-deck bill of lading is given to the exporter when the ship leaves port.

（8）Stale B/L: This is generally a bill of lading that is presented to the bank or delivered to the consignee after the cargo reaches its destination.

（9）Ante-dated B/L: This is a B/L which is dated before the date on which it is issued. In order to fulfil the conditions of the letter of credit, the shipper asked the carrier to issue an antedated bill and assured by a letter of indemnity that he would indemnify them in respect of any liability.

（10）Advanced B/L: The goods have been delivered to the carrier and not yet been shipped or have not yet been completed, and the carrier issue the on board bill of lading at the request of the shipper.

6.3.1.2 Three Functions Performed by the B/L

（1）Receipt for Goods

This is the historical reason for the document, which became known as a“bill of loading”and later as a“bill of lading”. The ship was used as the transport vehicle and a receipt was necessary from the ship's muster to prove that the goods were in fact received by him and would be in his safekeeping until delivery to the consignee. The bill is issued only on demand of the shipper（as is usual）and must show the marks necessary to identify the goods and the quantity of the goods, both furnished in writing by the shipper and the apparent order and condition of the goods.

（2）Evidence of the Contract of Carriage

The bill of lading is often described as evidence of the contract of carriage. Identifying the precise terms of the contract can, however, be a complicated task as bills often incorporate terms by reference to other documents.

（3）Document of Title to the Goods

The bill of lading is a document which acknowledges the receipt of goods on board a ship and it is signed by the captain of the ship or his duly authorized representative. It is also described as a proof of possession or control of goods. It authorizes, either by endorsement or delivery, its possessor to transfer or receive goods represented by it.

6.3.2 Sea Waybill

A transport document for maritime shipment serves as evidence of the contract of carriage and as a receipt for the goods, but is not a document of title. The sea waybill indicates the on board loading of the goods and can be used in cases where no ocean bill of lading and no other document of title is required. For receipt of the goods, presentation of the sea waybill by the consignee named therein is not required, which can speed up processing at the port of destination.

6.3.3 Air Waybill（Muster/House）

An air waybill or air consignment note is a receipt issued by an international airline for goods and an evidence of the contract of carriage, but it is not a document of title to the goods. Hence, the air waybill is non-negotiable.

6.3.4 Consignment Note

Consignment Note is a document containing particulars of goods for shipment and which provides proof that the consignment has been received by the carrier for delivery.

6.3.5 Cargo Receipt

Cargo Receipt validates that a dealer has delivered the particular cargo and associated documents to the assigned receiver. Through this receipt, the vendor is authorized to collect payment for the delivered cargo from the clients' bank that is documented defined in the letter of credit.

6.3.6 Combined Transport Documents

A transport document indicating more than one mode of transportation. For example: A received for shipment（marine B/L）indicating that pre-carriage from an inland originating point as well as main carriage transport were handled by main carrier. An air waybill shows that precarriage from the shipment originating point as well as main carriage were handled by the main carrier.

6.4 Three Rules Governing the Bill of Lading

6.4.1 The Hague Rules

The Hague Rules of 1924（formally the“International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading, and Protocol of Signature”）is an international convention to impose minimum standards upon commercial carriers of goods by sea. Previously, only the common law provided protection to cargo-owners; but the Hague Rules should not be seen as a“consumer's' charter”for shippers because the 1924 Convention actually favored carriers and reduced their obligations to shippers.

In brief, the Hague Rules is international convention for the unification of certain rules of law relating to bill of lading. Having recognized the utility of fixing by agreement certain uniform rules of law relating to bills of lading in favor of shipment.

6.4.2 The Hague-Visby Rules1968

The Hague-Visby Rules protocols to amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of lading. After being amended by the Brussels Amendments（officially the“Protocol to Amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading”）in 1968, the Rules became known colloquially as the Hague-Visby Rules.

The Hague-Visby Rules is a set of international rules for the international carriage of goods by sea. They are a slightly updated version of the original Hague Rules which were drafted in Brussels in 1924. The premise of the Hague-Visby Rules（and of the earlier English common law from which the Rules are drawn）was that a carrier typically has far greater bargaining power than the shipper, and that to protect the interests of the shipper/cargo-owner, the law should impose some minimum affreightment obligations upon the carrier. However, the Hague and Hague-Visby Rules were hardly a charter of new protections for cargo-owners; the English common law prior to 1924 provided more protection for cargo-owners, and imposed more liabilities upon“common carriers”.

6.4.3 The Hamburg Rules

The Hamburg Rules are a set of rules governing the international shipment of goods, resulting from the United Nations International Convention on the Carriage of Goods by Sea adopted in Hamburg on 31 March 1978. The Convention was an attempt to form a uniform legal base for the transportation of goods on oceangoing ships. A driving force behind the convention was the attempt of developing countries to level the playing field. It came into force on 1 November 1992. In brief, the Hamburg Rules are united nations convention on the Carriage of Goods by Sea. It's the amendments and addenda of the Hague and Visby Rules and protects the shipper.