FACTS
·
Subject vessel was employed on long-term
Time-Charter and was further under a Trip sub-Charter during the material
time.
·
She loaded about 30,000 MT cargo comprising of 3
grades of bulk grain at a port in Argentina for discharge at Casablanca, Morocco.
·
No Surveyor was appointed by sub-Charterers or
Shipper at the port of loading for Draft Survey.
Prior to and on completion of loading, the Vessel carried out draft survey as per usual practice and noted a shortage of 152 MT (being about 0.6% of total cargo loaded) as compared to Shore Scale figure.
Prior to and on completion of loading, the Vessel carried out draft survey as per usual practice and noted a shortage of 152 MT (being about 0.6% of total cargo loaded) as compared to Shore Scale figure.
·
The Master prepared a Note Of Protest (NOP)
letter which was e-mailed to all concerned, including the sub-Charterers,
Head-Charterers, Head-Owners and Port Agents (nominated by sub-Charterers).
·
Master issued CLEAN Mate's Receipts (MR) as
presented by Shippers with cargo quantity as per Shore Scale and without any
mention of Ship’s Figure as per Draft Survey carried out by Vessel.
Master further provided standard Letter Of Authority (LOA) to the Port Agents for issuance of Bills of Lading (BL) on his behalf. Amongst other things, this letter stated that BL to be issued “in accordance with MR”.
Master further provided standard Letter Of Authority (LOA) to the Port Agents for issuance of Bills of Lading (BL) on his behalf. Amongst other things, this letter stated that BL to be issued “in accordance with MR”.
·
Accordingly CLEAN B/Ls was issued by the Port
Agent on Master's behalf with cargo quantity as per Shore Scale.
·
Vessel arrived at discharge port in Morocco and had
to await discharge berth for several days however on Vessel’s arrival at
anchorage itself (and before vessel berthed or any Draft Survey could be
conducted or discharge commenced), Cargo Receivers lodged a claim of US$ 36,000
on Head-Owners for alleged cargo shortage with quantity tallying exactly as per
NOP issued by the Master at load-port, being the difference between Shore Scale
and Draft Survey figures.
·
Incidentally, the sub-Charterer, Shipper and
Consignee were all sister-concerns.
ANALYSIS:
·
Whether the Vessel is under Time Charter or
further Trip/Time sub-Charter, the Bill of Lading is ALWAYS issued by the carrier
(Vessel) who remains ultimately responsible for delivery of the cargo
quantity/quality to the consignee/receiver/notify party named therein.
·
In this case, the Master issued a NOP but also
CLEAN MRs without mentioning Draft Survey quantity which was short of Shore
Scale quantity.
·
The NOP was Master's own admission of short
receipt of cargo at load-port which the Consignees/Receivers used to their
advantage at the discharge port in claiming damages from the Vessel/Owners.
WAY FORWARD:
1.
Cargo
Quantity to be stated on MR/BL:
On receipt of Voyage Instructions from Charterers/sub-Charterers, the Master must check in it whether the cargo quantity to be stated on MR/BL would be as per Shore Scale or as per Draft Survey.
If not clearly mentioned in the Voyage Instructions, the Master must expressly check with Charterers/sub-Charterers on this account and seek absolute clarity.
2. Draft Survey:
·
Sometimes
Charterers/sub-Charterers/Shippers/Consignees arrange for their Draft Surveyors
at the load and discharge port. When the Surveyor comes on board, and prior
commencing the Draft Survey, the Master must seek his details (Name/Company)
and which party is he representing. In such cases, the Draft Survey must be
performed jointly (Surveyor and Vessel) and same agreed upon accordingly. The
Draft Survey Report must be jointly signed by the Vessel and the Draft
Surveyor, who must state all the details (Name, Company Name, Party being
represented etc.) along with Surveyor's Signature/seal.
·
Should there be any disagreement between the
Vessel and the Draft Surveyor, no efforts must be spared to resolve same
amicably on board however should disputes remain unresolved,the Master
must contact Owners immediately by telephone followed by sending full details
by e-mail. It is important that Owner's P&I Club correspondents at the load
port are immediately notified, either through the Owners or directly by the
Master in case of emergency, and their attendance requested.
·
Even if no Surveyor is appointed by any external
parties, Vessel must, in all cases, carry out Initial and Final Draft Survey on
her own per usual, to determine cargo quantity loaded (at load port) and
discharged (at disport).
3.
Discrepancy
between Shore Scale Figure and Draft Survey Figure:
a) At Load Port:
·
Though ideally both these figures must tally, it
is not uncommon for there to be some difference between them.The reason for
these could be many, such as Shore Scale not correctly calibrated or Draft
Survey in error due to rough sea/swell conditions at berth/anchorage, etc.In
spite of best efforts, if discrepancies do exist, same must be clearly stated
on MR/ BL. However in most cases, it is a requirement to issue CLEAN MR/BL and
the Shipper and/or Agents may refuse to accept MR/BL claused to such effect.In
such cases and especially in every case when the discrepancy exceeds 0.5% of
the total cargo quantity, Master must contact Owners immediately by telephone
followed by sending full details by e-mail. It is important that Owner's
P&I Club correspondents at the load port are immediately notified, either
through the Owners or directly by the Master, and their attendance requested.
The Correspondents are expected to be aware of and appreciate the local issues
and are expected to effectively sort out the matter without compromising
Vessel/Owner's position, and this needs to be done prior Vessel's departure
from the load-port.
b) At discharge port:
·
It must be remembered at all times that the
Vessel/Owners remain responsible for delivery of cargo as stated in the BL.
Regardless of the number of Charterers or sub-Charterers in the chain, nothing
dilutes this position. This applies as regards cargo quantity/quality as also
the party to whom it is delivered.
·
Vessel must NEVER break and commence discharging
of the cargo unless in receipt of "duly discharged" ORIGINAL BL or unless the Owners specifically instruct
the Master to commence discharging in absence of ORIGINAL BL on the basis of Letter Of Indemnity (LOI)
issued to them by the Head-Charterers. A reminder message for surrender of ORIGINAL
BL on arrival at disport must be sent by the Vessel to Port Agent several days
ahead of Vessel's ETA at disport.
·
Total cargo discharged at disport may be arrived
at basis either a Draft Survey or based on Shore Scale. Once again, the Draft
Survey must show the cargo quantity to closely match the figure stated on the
BL; else there could be Customs Penalties imposed on the Vessel/Owner (for
mis-declaration as in case of excess cargo on board than stated on BL) or
claims lodged by Receivers/Consignees on the Vessel/Owner (as in subject case
of shortage of cargo discharged than stated on BL).
·
On completion of discharging, Vessel must obtain
(1) Empty Hold Letter and (2) Total Cargo Discharged (quantity) Letter signed
by Stevedores/Port Agents.
Should Vessel be presented with any letter(s) by Stevedores/Consignees-Receivers/Port Agents stating short discharge, Master must immediately contact Head-Owners by telephone followed by sending full details by email. Once again, in such cases, it is important that Owner's P&I Club correspondents at the load port are immediately notified, either through the Owners or directly by the Master, and their attendance requested. The Correspondents are expected to be aware of and appreciate the local issues and are expected to effectively sort out the matter without compromising Vessel/Owner's position, and this needs to be done prior Vessel's departure from the disport.
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