Charterer’s Liability in Bangladesh

Charterer’s Liability in Bangladesh

Charterer’s Liability in Bangladesh

Charterer’s Liability in Bangladesh

In the absence of tangible cargo loss or damage, cargo claims may also be filed. This occurs when the ship furnishes inaccurate descriptions of the quantity, weight, and dimensions of the cargo on the documents attesting to its shipment. Notwithstanding the shipper’s complete description of the cargo, the vessel would be held accountable for the error if the cargo manifest prepared by the ship’s agent at the discharge port contains an inaccurate description of the goods.

Neglecting to connect the buyer’s products at the port of discharge due to an inaccurate description of the merchandise will result in substantial financial losses. Although the recipient has paid the complete invoice amount for the quantity of cargo actually laden, the ship may occasionally deliver a lesser quantity. This may have occurred as a result of an on-board calculation error or insufficient cargo being unloaded at an alternative port.

Disadvantages of the cargo itself, such as evaporation, condensation, spoilage caused by inadequate packing or preservation by the shipper, would make it difficult to hold the vessel liable for the loss of products. Loss or damage to cargo resulting from its own characteristics is also precluded by the cargo policy.

The Captain and Charterer’s Liability

In accordance with the terms of the contract of carriage, a shipowner may be held culpable for cargo damage. In accordance with the Multimodal Transportation of Goods Act of 1993, in cases where a shipment is recorded with a Multimodal Transport Operator (MTO), the MTO is liable for any loss or injury to the cargo. Claims may be filed against the Carrier (in the case where the Charterer or NVOC (Non-Vessel Owning Carrier) is the contractual carrier and the Ship owner is held liable for the contract of carriage due to her negligence, in cases where the Ship owner is not the Carrier under the contract of carriage. As there is no contractual agreement of carriage between the non-carrying ship and the cargo, any claim lodged against the non-carrying vessel must be brought in tort.

The Charterer’s liability shall be governed by the stipulations and conditions outlined in the CP agreement in cases where the products are transported in accordance with a charter party agreement. Before initiating recovery proceedings against the Carriers, it is critical to ascertain whether they will be held liable under a carriage contract or tort law.

Initiating the proceedings under a contract of carriage will entitle the shipowner to a defense in accordance with the conventions of Hague/Vienna, Rotterdam, or Hamburg Rules. However, if the proceedings are initiated in tort, the shipowner’s defense will not be governed by any of the aforementioned conventions. A special clause, such as the Himalaya Clause or the Circular indemnity clause, may be invoked by the carrier regardless.

Licerance pursuant to the Charter Party Agreement

If the consignor has a direct contract of carriage with the shipping company, their liability will be determined in accordance with the Bills of Lading. The Charterer’s liability concerning the shipment of a vessel shall be governed by the CP Agreement’s terms and conditions. “Time” or “Voyage” charters shall constitute the common charter party agreement as follows:

Chart of Time:

For a specified period of time, such as one year or six months, the ship is transferred from the proprietors to the charterer under the terms of a Time Charter. As the charterer does not own the cargo, they are not permitted to file a claim for cargo damage that occurs during the vessel’s employment. Under a CP Agreement, cargo claims will be submitted to the Charterer when a time charter is performed on an indemnity basis. The suitability of the charter party provisions for a claim against the carrier depends on whether the carrier is the time charterer or the shipowner.

Chart of Voyage:

The cargo recipient may function as a voyage charter beneficiary who acquires the goods under FOB terms in the event of a voyage charter. As opposed to bills of lading, the voyage charter would govern the contract of carriage between the shipowner and the recipient of the commodities. In accordance with the CP Agreement, any subsequent claim will be filed against the shipowners; bills of lading will not be applicable. Except as evidence of products receipt, the bills of lading shall be regarded as such.

Cargo is not chartered by the recipient when the products are acquired under CIF conditions. The vessel will be chartered by the seller; however, the Bills of Lading, and not the voyage charter, shall regulate the contract of carriage between the shipowner and the recipient of the goods. Subsequently, the dispute will be resolved between the shipowner and the charterer, with the initial claim being submitted under a bill of lading.

Lodging documents

Upon the products’ embarkation, the bills of lading are formally issued by the Master of the vessel. Not the contract of conveyance themselves, bills of lading serve as evidence of the contract. The Bills of Lading are of two distinct varieties:

  1. To command or Negotiable
  2. Bill of cargo and non-negotiable

Without the specific consignee or recipient of the products’ names, a “Negotiable or To Order” Bill of Lading is issued. The notify party’s name is included, such as M/s ABC & Co, in conjunction with “To order,” which in this case refers to the State Bank of India. In exchange for full payment of the invoice, the notify party may request the banker to release the title documents. The cargo can be released from the shipping company upon the receiver’s receipt of the title document. The title document cannot be transferred when the bills of lading contain a specific mention of the consignee’s name. Only the individual in possession of the title document may file a claim against the shipping company.

A cautionary tale’s moral is as follows:

The following should be evaluated by the underwriters handling a marine claim:

  1. Under the Bill of Lading, Who Is the Carrier?
  2. Who, for the transportation of products, has collected freight?
  3. Is the bill of lading subject to the following terms and conditions?
  4. Following the Carrier, what is the statute of limitations for pursuing a lawsuit?
  5. The venue, or jurisdiction, in which the lawsuit would be initiated

Regarding whether the lawsuit will be filed under a contract of carriage or a tort, it is necessary to ascertain which party is the Carrier as indicated on the bill of lading.

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