The transport contract
The different types of transport contracts |
The transport documents | The pricing rules
The Carrier who wishes to use Documentary Credit, must pay great attention to
the transport document which he will receive. If this does not respect the
obligations laid out in the contract for Documentary Credit, it will be
impossible for the bank to pay on receiving the documents.
Sea transport
1.
The Marine Bill of Lading.
The
document in question is the marine
bill of lading.
It is a vital paper. By issuing it, the captain of a ship, or his agent
acknowledge they have received the aforementioned goods, and are engaged to
transport them, under the agreed conditions and deliver them to the specified
location in accordance with the instructions, in return for payment. The bill
of lading is denoted by the fulfilment of a transport contract. It legalises
the delivery and therefore the ownership of the goods at destination. In this
way, it is a functional support to the transport contract, also as a document
defining the ownership of the goods.
The
maritime bill of lading can be :
- payable
to
:
transferred by single endorsement. It is the most commonly used method, in
particular with documentary credit;
- straight
:
the document becomes non-negotiable;
- on
board
:
it confirms the loading of the merchandise at the date of signature;
- received
for shipment
:
it is proof of the goods having been received and not the eventual shipment;
- clean :
it certifies the goods have been received in good apparent state;
- dirty :
reservations added by the company on the quantity or state of the merchandise
diminish the carrier's responsibility.
The
Marine bill of lading is drawn up by the agent of the shipping company. Three
copies are issued.
2.
Marine Transport Letter. (MTL)
The
Marine Transport Letter is not regarded as a bill of possession. It consists
solely of the transport contract, passed between the sender and the shipping
company, and represents the goods having been received. It can therefore be
compared with the Road Consignment Note (CMR) and Air Consignment Note (ACN).
It is in effect, non negotiable.
This
document has been introduced in order to allow the sender to send information
to the buyer,
telematically,
from the goods being loaded, up until the most recent stage, taking all the
necessary steps to complete custom's clearance
and the receipt process.
3.
The Multimodal Transport Document.
This
consists of a transport document, incorporating at least two modes of
transport. The category includes combined transport bills or CTBL (Combined
Transport Bill of Lading). This document covers combined transport in which the
principle method is by ship.
4.
The Charter Party.
This
document is used for chartering contracts (hiring a vehicle for one journey or
one length of time as stated by the seller) by ship. It lists the obligations
of each of the parties.
Air
transport
The
document used is the
air consignment note (ACN) or the House Air Way Bill.
If it is used for a small quantity shipment, the Air Way Bill (AWB) is made out
by the airline's agent. In the case of a groupage shipment 
, the House Air
Way Bill is produced by the air freight grouping agent.
The
AWB is: the proof of the transport contract, the proof that the merchandise is
in hold and the supporting proof of the price simultaneously. Nevertheless, the
bill is non-negotiable. The AWB only certifies the shipment when the company
has written on it the date and flight number.
Air
Transport is regulated by the Warsaw Convention of October 12
1929. The "International Air Transport
Association" (IATA) has drawn up a
model AWB which conforms to the regulations set out in this convention.
Road
transport
The
document used is the Consignment
note (CMR).
It confirms the goods held are in good condition if it is free of reservations,
and the shipment from the carrier's signature. It is the materialisation
of a transport contract for goods which remain independent of it. It has to be
made out corresponding to the template given in the: "Convention relating
to the International road consignment note". (CMR)
Rail
transport
The
document in question is the Rail
consignment note (CIM).
This is made out by the sender and the company. It becomes the transport
contract from the moment the rail company agrees to transport the merchandise.
This acceptance is certified by attaching a date stamp, from the station of
dispatch, to the consignment note. This note must be made out corresponding to
the guideline given in the: "International Convention relating to the
transportation of goods by rail" (CIM).
Inland
Waterways transport
Deliveries
by waterway are documented by:
- either
a Consignment Note (as for road transport) and confirmation of holding by the
carrier;
- or
an inland waterway bill of lading, a document which is related to the marine
bill of lading because it is negotiable if required and is conveyed by a single
endorsement.