LLM Shipping Seminar 4 - Sh's duties

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Faculty of Business and

Law

LLM Shipping Law

M Jalleh

LLM SHIPPING

© UWE Bristol Page 1


SEMINAR 4 – SHIPPER’S DUTIES UNDER THE CARRIAGE
CONTRACT.
A POSSIBLE ALTERNATIVE TYPE OF CARRIAGE CONTRACT
– A CHARTERPARTY?

OBJECTIVES

(1) A look at the 2 main duties of the Shipper under the carriage contract:

(a) Payment of freight;

(b) Where there are ‘dangerous’ situations resulting from cargo’.

(2) Understand how payment of freight works, for eg when is it usually payable,
what
happens if it is not payable in advance, the use of pro-rata clauses, when
‘back freight’
arises.

(3) Understand what is meant by ‘dangerous situations arising from


cargo’/’dangerous
goods’.

What is the duty of the Shipper in relation to such goods?


Consider the position under the Common Law and under the HVR (Refer to
HVR Art IV
r6).

Distinguish between:
- ‘obviously dangerous goods’, and
- ‘goods that are dangerous other than through their physical qualities’.

(4) A brief look at the concept of ‘general average’ and its significance in sea
carriage.
When does it arise and how does it work?

(5) A brief look at charterparties as an alternative. What are charterparties?


Why would a
party use this method to transport their goods? Wat are the common types of
charterparties? How do they work?

© UWE Bristol Page 2


At the end of this session, the student should be able to understand how the 2
main duties of the Shipper work, ie payment of freight and where there are
‘dangerous situations resulting from cargo’.

The student should also have a basic understanding of the marine insurance
concept of general average. She should also know when this concept arises and
how it works. Is it useful as a loss spreading devise?

Additionally, the student should realise that there are other alternatives in order
to avoid having the HVR apply to a sea carriage contract, even if a situation
under HVR Art X is present; an example is by using a charterparty. The student
should know what a charterparty is. What are the common types of
charterparties? Consider in particular voyage charterparties and time
charterparties. She should also understand the basics of how each of these
charterparties work.

READING

GENERAL

Ewan McKendrick, Goode & McKendrick on Commercial Law (6th edn, Penguin
2020), Chp 36.
Carole Murray, David Holloway and Daren Timson-Hunt, Schmitthoff The Law and
Practice of International Trade (12th edn, Sweet & Maxwell 2012), Chp 15.

CASES

Dakin v Oxley (1864) 15 CBNS 646


Mitchell Cotts & Co v Steel Bros & Co [1916] 2 KB 610

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