Key Elements of Shipping Terms & Conditions
1. Definitions & Scope of Services
This section clarifies essential terminologies and the scope of services provided, including:
Shipper: The party that delivers cargo for transportation.
Consignee: The recipient of the cargo at the destination.
Carrier: The ocean carrier or vessel operator responsible for transportation.
Bill of Lading (B/L): A legal document confirming receipt of cargo and shipment terms.
Freight Forwarding: Coordination and management of cargo movement across different transport modes.
CFS (Container Freight Station): A facility for consolidating and deconsolidating cargo.
The responsibilities include arranging cargo space, issuing bills of lading, coordinating with ocean carriers, handling documentation, and ensuring regulatory compliance.
2. Booking & Cargo Acceptance
Booking Confirmation: The shipper must submit a shipping request, and availability will be confirmed.
Cargo Description: The shipper must provide accurate details, including weight, dimensions, quantity, and hazardous nature (if applicable).
Cargo Restrictions: Prohibited items include weapons, contraband, perishable goods (unless agreed upon), and hazardous materials without proper documentation.
Right to Refuse Shipment: Cargo that does not meet legal or operational requirements may be rejected.
3. Freight Charges, Payment Terms & Tariffs
Freight Rates: Charges depend on cargo weight, volume, destination, container type, and additional services (such as customs clearance).
Payment Terms:
Freight charges must be prepaid or collected at the destination based on agreement.
Any outstanding payments must be cleared before cargo release.
Additional Charges:
Port charges, demurrage, detention, customs duties, and documentation fees are billed separately.
Late Payment Penalties: Interest or penalties apply for overdue payments.
4. Bill of Lading (B/L) & Documentation
Issuance of B/L: A House Bill of Lading (HBL) is issued as a contract of carriage.
Shipper’s Responsibility:
Cargo details must be accurate for documentation.
Any misdeclaration may result in penalties or cargo rejection.
Liability Under B/L Terms:
The carrier’s liability is limited as per international shipping conventions (such as Hague-Visby Rules).
Surrender & Release of B/L:
The consignee must provide the original B/L or a telex release to claim the cargo.
5. Cargo Handling, Packing & Labeling
Proper Packaging: The shipper must ensure cargo is adequately packed to withstand transit conditions.
Labeling & Marking: Each package should have clear shipping marks, weight, and handling instructions.
Dangerous Goods:
Compliance with the IMDG (International Maritime Dangerous Goods) Code is required.
Special handling fees and additional documentation (MSDS – Material Safety Data Sheet) may apply.
Inspection Rights:
Cargo may be inspected, refused, or repackaged for safety or compliance.
6. Liability, Claims & Insurance
Carrier's Liability: Limited liability as per international shipping conventions (Hague-Visby Rules, Carriage of Goods by Sea Act – COGSA).
Exclusions & Limitations: Not liable for:
Acts of God (natural disasters, storms, earthquakes).
War, strikes, terrorism, or labor disputes.
Inherent cargo defects.
Improper packing by the shipper.
Claims Process:
Claims for damage or loss must be filed within 30-90 days with proof of loss.
Cargo Insurance:
Cargo insurance is not automatically provided and must be arranged separately.
7. Storage, Demurrage & Detention Charges
Demurrage Charges: Fees apply if cargo remains at the port beyond the free period.
Detention Charges: Fees apply if containers are held beyond the allowed period after delivery.
Warehouse Storage: Additional storage fees may apply for unclaimed or delayed cargo.
8. Customs Clearance & Regulatory Compliance
Documentation Requirements: The shipper must submit invoices, packing lists, permits, and certificates of origin.
Customs Duties & Taxes: The consignee is responsible for all applicable duties and taxes.
Regulatory Compliance:
Compliance with international trade laws, customs regulations, and maritime safety protocols is mandatory.
Any failure to meet regulations may result in shipment delays or penalties.
9. Force Majeure & Legal Jurisdiction
Force Majeure Clause: Not liable for delays due to:
Natural disasters, pandemics, or global crises.
Government restrictions, embargoes, or sanctions.
Mechanical failures or accidents beyond control.
Legal Jurisdiction: Any disputes shall be governed by the laws of the country where the company is registered.
10. Amendments & Modifications
Changes in Terms: The company reserves the right to modify shipping terms, freight charges, and operational policies.
Notice Period: Clients will be notified in advance about significant changes to contractual terms.
