Shipment must be made
at the vessel's last scheduled call at the port of shipment before commencing
the final voyage. This is reminiscent of when traditional break bulk
vessels used to discharge and load cargo at a range of ports in the same region
and in so doing might call at the same port on the way in and on the way out.
Modern container vessels rarely if ever do so but the stipulation is
nevertheless a valid one and applies to both ECC and GCA.
Shipment must be made by conference line or other
acceptable vessel (ECF), or metal-hulled, self propelled vessels which are not
over 20 years of age and not less than 1,000 net registered tons, classed A1
American Record or equivalent,operating in
their regular trade (GCA). This prevents shippers from using any old tramp
vessel that happens to be available. (Tramp vessels make irregular port calls to
discharge and look for new cargo, i.e. the exact opposite of liner vessels.)
Note also that at some future stage European Union authorities may introduce
legislation covering the type, class, condition and age of ships that may enter
European Union ports. *
Shippers will pass on to
the shipping line all relevant instructions received from buyers.These apply equally to shipment in bags in
containers, and to shipments in bulk.
Shipment in bags
Shipment in
containers, suitable for the transport of coffee, shall be permitted under
LCL/FCL conditions, whereby the shipping company is
responsible for the number of bags and the condition and suitability of the
containers.
However, shipping
lines increasingly discourage LCL/FCL (or LCL/LCL) and in future shippers
may not always be able to satisfy buyer's wishes in this regard. In this case
their only option will be to effect weighing and stuffing under independent
supervision at their expense since all other shipments in containers shall
require agreement of the parties. Again, GCA leaves the matter of the shipment
basis to the parties to the contract.
LCL, or less than container load: the shipping line accepts responsibility for the number
of bags. FCL, or full container load: the line
accepts responsibility only for the container, not for the contents, by
stating for example, STC (said to contain) 300 bags of coffee on the bill of
lading. See also 05, Logistics and Insurance.
Shipment in bulk
Unless otherwise agreed, shipment shall be made under
FCL/FCL conditions. This reflects the move from break bulk to almost
universal containerization. The 1991 edition of the ECC still stipulated that
only LCL/LCL was acceptable and that shipment in bulk required prior agreement.
Unless otherwise stated, FCL/FCL is now the norm. This means that bulk is
increasingly, if not always, loaded and weighed under independent supervision,
but shippers still have to pass on to the shipping line all relevant
instructions received from buyers, and in case of damage may be asked to provide
proof of having done so. GCA leaves the matter entirely to the parties, who must
stipulate the agreed shipping basis in the contract.
Delay in shipment
Sellers shall
not be held responsible if they are able to prove their case. The most
important point this article makes is that the buyer must be kept informed at
all times without undue delay. This is absolutely essential. Delays in shipment
usually affect buyers adversely and they must be enabled to take measures to
protect themselves. Failing to respect this clause not only is entirely
unprofessional but can also result in unforeseen consequences, possibly even
cancellation of the contract.
On-carriage of
containers
Buyers may
discharge containers at inland destinations. The point of containerization
is to minimize handling and the only object of this clause is to permit
receivers to bring the coffee without unnecessary handling as near to its final
destination as possible, for example a roasting plant. In case of weight claims
buyers have to prove weighing took place under independent supervision. GCA
permits the same. In addition it defines the port of entry as all dock and
warehouse facilities within a 50-mile radius of ships berth that are used for
the discharge of ships cargo (or all freight facilities within a 50-mile radius
of a border crossing).
Advice of shipment
Both ECC and GCA require that advice of shipment must
be transmitted as soon as known. In
practice only gross negligence could explain why one would not advise buyers as
soon as possible, which only leaves the question of whether or not the advice
actually reaches them promptly. But ECC and GCA approach this question very
differently. ECC considers it may not be within the sellers control and so, in
theory, it suffices if buyers receive the notice before the vessel arrives at
the port of destination. Only someone with no interest in good business
relationships would consider this normal practice, however.
E.FCA.CC on the other hand
stipulates that advice of delivery must be transmitted within 2 calendar days of
the date of delivery.
There is an important provision in the articles dealing
with advice of shipment and/or delivery. If a shipping or delivery advice is not
received by noon on the fourteenth calendar day after the expiry of the
contractual shipping or delivery period, and if there has been no notification
of a delay and no force majeure has been
pleaded, then damages may be claimed or the buyer may cancel the contract
altogether. This could leave a forgetful exporter with an unsold and most likely
uninsured shipment. See Article 13(d) of the ECC and Article 12(d) of the
E.FCA.CC for full details.
GCA on the other hand states that for FCA, FOB, CFR,
CIF and EDK contracts, written advice with all details must be transmitted not
just as soon as known, but not later than on the day of arrival of the vessel at
destination and/or five business days from bill of lading date, whichever is
later. The advice may be given verbally with email or fax confirmation to be
sent the same day. This is included because of the close proximity of many Latin
American producing countries to the United States, but it applies to all
contracts.
Shipping documents
Sellers must
provide shipping documents in good time (including a full set of clean on
board bills of lading, i.e. bills stating that the goods were received on board
ship in apparent good order), enabling the buyer to clear the goods upon
arrival. Failure to provide documents in time will incur demurrage and other
costs, and could even lead to cancellation of the contract under both ECC and
GCA. Delivery documents under E.FCA.CC are to be made available promptly but
latest within 14 days of the carrier's receipt, otherwise penalties or in
extreme cases cancellation may apply.
ECC Article 18 and E.FCA.CC Article 17 stipulate the
documents buyers are entitled to receive and those they are entitled to
request.
* Editor's note: Information on vessel registration
and vessels themselves is available atwww.lloydsmiu.com, however by subscription only.