18/09/2023
INTERNATIONAL TRANSPORT AND INSURANCE
PHAN VŨ NGỌC LAN – MDE International Business
Administration Department lanpvn@huflit.edu.vn 1 CHAPTER 4 LINER CHARTERING 2 1 18/09/2023 In this chapter 1. Definition 2. Features 3. Pros and cons 4. Process of liner chartering
5. Liner chartering for shipment in containers 6. Freight in liner chartering
7. Incoterms rules for ocean shipment 8. Bill of lading (B/L) 3 1. Definition
Liners: ships trading between fixed and
predetermined number of ports regardless
whether they are full or empty.
Booking Shipping Space: the activity in which
the shipper, on his own or through a broker,
requests the shipowner / carrier to offer him a
space on the ship for carrying his cargo from one port to another. 4 2 18/09/2023 1. Definition
Shipper sends out booking note to the shipping line or its agent.
The shipping line confirm such action via the
booking confirmation/booking acknowledge 5 2. Features
Liners’ cargoes are made up of a large number of
different consignments from a number of different
shippers. Not high quantity. Usually: dry cargo with packaging.
Plying among fixed ports and following published schedules and routes.
Liner freight includes loading, stowage/trimming and
discharge expenses. Liner freight is calculated according
to liner tariff valid for a certain period of time.
The transport document is bill of lading that regulates
the relationship of the carriers and cargo owners (i.e.
shipper or consignee). There is only the signature of the
shipmaster on B/L or his representative, not the shipper’s or consignee’s. 6 3 18/09/2023 2. Features
Multilateral relation: a shipowner / carrier many shippers. No regulations on Laytime and
Despatch / Demurrage as loading and
unloading are the shipowner/carrier’s responsibility. 7 3. Pros and Cons Pros (Advantages): Unlimited quantity of cargo.
Loading and unloading are handled by the shipowner / carrier.
Simple procedures in booking. Convenience
in choosing commercial terms (e.g. Incoterms).
Convenience for shipper in calculating
business effectiveness and booking. 8 4 18/09/2023 3. Pros and Cons Cons (Disadvantages) High freight rates.
Shipper in weak legal status / position.
Inflexibility in carriage operation. 9
4. Liner booking procedure B/L Booking note Shipper Broker Shipowner / Booking confirmation Carrier Goods 10 5 18/09/2023 5. Liner chartering for Container shipment FCL/FCL LCL/LCL LCL/FCL FCL/LCL 11 12 6 18/09/2023
Container Freight Station (CFS) 13
A. Full Container Load – FCL/FCL Booking Empty Container Release Order Consignor / Mate receipt B/L Carrier Shipper F u Full container ll E c m on p t t a y i n c e o B/L r nta Docs ine Consignee r 14 7 18/09/2023
A. Full Container Load – FCL/FCL
Shipper’s responsibilities
Preparing the goods for transportation, (packing,
marking, dunnage or customs clearance if needed)
Rendering booking confirmation to get Empty
container release Order.
Picking up empty containers from ICD, CY as
stipulated in the container release note.
Conducting the counting, stuffing into container and
banding of goods after customs clearance.
Closing the doors with a seal to make sure that
the container is intact during the route of the ship
from port of loading to port of discharge; 15
A. Full Container Load – FCL/FCL
Shipper’s responsibilities (cont.)
Taking full containers to CY/ ICD and handing
over to the carrier in accordance with carrier’s
instructions stipulated on booking confirmation;
Receiving EIR (Equipment Interchange Receipt).;
Receiving shipped B/L from the carrier after the
containers are loaded on board of the ship;
Paying related charges & fees (terminal handling
charge (THC) at port of loading, B/L fees, freight (if any));
Sending necessary documents (B/L and other
cargo documents) to the Consignee. 16 8 18/09/2023
A. Full Container Load – FCL/FCL Carrier’s responsibilities
Receiving Booking note from the Merchant;
Confirming available space by Booking confirmation and container release note;
Releasing empty containers;
Taking over full containers from the shipper at CY or ICD;
Loading cargoes onto ship;
Collecting charges, fees, freight (if any) and issuing B/L;
Transporting containers to destination port;
Discharging containers to CY or ICD;
Sending the consignee the Notice of Arrival;
Releasing containers in exchange of B/L. 17
A. Full Container Load – FCL/FCL Consignee’s responsibilities
Receiving B/L and cargo documents from the
Shipper and the arrival notice from carrier;
Surrendering B/L to the carrier or his agent to receive D/O (Delivery Order);
Picking up full containers at the arrival terminal;
Taking containers to his firm for unstuffing goods;
Cutting seal and opening the doors, withdrawing goods out of the containers;
Returning empty containers back to the carrier’s
premise and paying related charges and fees; 18 9 18/09/2023
B. Less than Container Load - LCL/LCL Forwarder / Forwarder / Consolidator Consolidator ocs val D rri + oods + Master B/L Carrier + Master B/L G elivery otice of A D N House B/L House B/L Docs Consignor Consignee 19
B. Less than Container Load - LCL/LCL Shipper’s responsibilities
Booking a space of the ship or a container with a
consolidator/freight forwarder (if applicable) or
receiving a booking confirmation from the importer;
Doing customs clearance for the goods (if required);
Arranging and pay for the goods to be sent to the
inland clearance depot (ICD) or container freight station (CFS); and
Getting B/L from the carrier and send it to the consignee. 20 10