Certification Assistance for Canadian Navigators
Canadian
Ocean Navigator
Master's Ship Business : Part 2
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Transport Canada has ask us to advise users of this webpage to keep in mind that these questions are not the exact questions found in their exams. Martin's Marine Engineering Page - www.dieselduck.net is not affiliated with Transport Canada and these questions have been gathered from various sources.
Notes
Deviation
Definition: Any departure from the �Contract or Usual route between Ports �
Deviation as a shipping term has several meanings, but basically whether talking
about insurance contracts or contracts of affrightment, deviations is a
departure from the usual or contract route that a ship takes while executing a
delivery of goods it�s carrying.
A voyage policy may enumerate ports of call, or it may give leave to call at any
ports or places whatsoever. This expression however is very restrictive in its
meaning and liberty given is only to call at the usual ports on the particular
voyage. If the ship deviates without lawful excuse, the underwrites are
discharged from liability from the time of deviation, and it is immaterial that
the ship may have regained her route before loss occurs.
There is a deviation whenever:
a) The route designated by the policy is departed from
b) If no route is designated, the usual route is departed from.
When ports of discharge in a given area are not named, or not mentioned in any special order, the ship must go to them in strict Geographical order. Failure to do so amounts to deviation. An intention will not void the policy before the ship if a loss occurs before the ship actually deviates. In the case of a Voyage Policy the voyage most be prosecuted with reasonable dispatch. Any unreasonable delay will void the policy. As a general rule of thumb deviation or delay in prosecuting the voyage contemplated by the policy is excused:
A) When authorized by any special term in the policy/
B) Where caused by circumstances beyond the control of the Master and his employer.
C) Where reasonable necessary in order to comply with an express or implied warranty.
D) Where reasonably necessary for the safety of the ship or subject matter insured.
E) For the purpose of saving human life, or aiding a ship in distress where human life may be in danger
F) Where reasonably necessary for the purpose of obtaining medical or surgical aid for any person on board.
G) Where caused by the BARRATROUS conduct of the master or crew, if barratry is one of the perils insured against.
When the cause excusing the deviation or delay ceases to operate, the ship must resume her course and prosecute her voyage, with reasonable dispatch.
Charter Party:
Lay Time:
Definitions
1) Port- means an area within which ships are loaded with &/ or discharged of cargo and includes the usual places where ships wait for their turn or are orders or obliged to wait for their turn no matter the distance from that area. If the words port is not used, but the port is, or is, to be identified by name, this definition shall still apply.
2) Safe Port- means a port which, during the relevant period of time, the ship can reach, enter, remain at and depart from without, in the absence of some abnormal occurrence, being exposed to danger which cannot be avoided by good navigation and seamanship.
3) Berth- means the specific place where the ship is to load / discharge. If the word berth is not used, but specific place is, or is to be, identified by its name, this definition shall still apply.
4) Safe Berth- means a berth which, during the relevant period of time, the ship can reach, remain at and depart from without, in the absence of some abnormal occurrence, being exposed to danger which can not be avoided by good navigation and seaman ship.
5) Reachable on Arrival -or� Always Accessible- means that the charterer undertakes the when the ship arrives at the port there will be a loading / discharge berth for her to which she can proceed without delay.
6) Laytime- means the period of time agreed between the parties during which the owner will make and keep the ship available for loading / discharging without payment additional to the freight.
7) Customary Despatch- means that the charterer must load / discharge as fast as possible in the prevailing circumstances at the time of loading or discharging.
8) Per Hatch Per Day- means that Laytime is to be calculated by multiplying the
agreed daily rate per hatch of loading / discharging the cargo by the number of
the ships hatches and divided by the quantity of cargo by the resulting sum.
Laytime = Quantity of Cargo
= days.
Daily rate x number of hatches
A hatch that is capable of being worked by two gangs simultaneously shall be counted as two hatches
9) Per Working Hatch Per Day- or per workable hatch per day: means that Laytime
can be calculated by dividing the quantity of cargo in each hold with the
largest quantity by the results of multiplying the agreed daily rate per working
or workable hatch by the number of hatches serving the hold
Laytime = Largest Quantity in one hold
= Days
Daily rate x No. of hatches serving that hold
A hatch that is capable of being worked by two gangs simultaneously shall be
counted as two hatches.
10) As fast as vessel can Receive / Deliver- means that the Laytime is a period of time to be calculated by reference to the maximum rate which the ship in full working order is capable of loading / discharging the cargo.
11) Day- means a continuous period of 24 hours which unless the contract otherwise require, runs from midnight to midnight.
12) Clear Day or Clear Days- means that the day on which the notice is given and the day on which the notice expires are not included in the notice period.
13) Holliday- means a day of the week or part thereof on which cargo work I on ship would normally take place but is suspended at the place of loading /discharging by reason of : i)) Local Law, ii)) The Local Practice.
14) Working Days- means days or part thereof which is not expressly excluded from Laytime by the charter party and which are not holidays.
15) Running Days or Consecutive days- means days which follow one immediately after the other.
16) Weather Working Days- means a working day or part of a working day during which it is, or if the vessel is still waiting for her turn, it would be possible to load / discharge the cargo without interference due to weather, or would have occurred, the Laytime period is calculated by reference to the ration which the duration if the interference, to the time which would have or could have been worked but for the interference.
17) Weather Working Day of Consecutive Hours- means a working day or part of a working day of 24 hours, during which it is or, if the ship is still waiting for her turn it would be possible to load / discharge the cargo without interference due to weather. If such interference occurs ( or would have occurred if work had been in progress ) there shall be excluded from the Laytime the period during which the weather interfered or would have interfered with the work,
18) Weather Permitting- means that time during which weather prevents working shall not be counted as Laytime.
19) Excepted- means that the specified days do not count as Laytime even if loading / discharging is done on them.
20) Unless Used- means that if work is carried out during the excepted days the actual hours of work only counts as Laytime
21) To Average- means that separate calculations are to be made for loading & discharging and anytime saved in one operation is to be set against any excess time used in the other.
22) Reversible- means an option given to the charter to add together the time allowed for loading & discharging. Where the option is expired the effect is the same as a total time being specified to cover both operations.
23) Notice of Readiness- means notice to the charterer, shipper, receiver, or other person required by the charter that the ship has arrived at the port or berth as the case may be and is ready to load / discharge.
24) In Writing- means in relation to the notice of readiness, a notice visibly expressed in any mode of reproducing words and includes cable, telegrams, & telex, faxes. ECT...
25) Time Lost Waiting for Berth to Count as Loading / Discharging Time or as Laytime- means that if the main reason why a notice of readiness cannot be given is that there is no loading / discharging berth available to the ship the Laytime will commence to run when the ship starts to wait for a berth and will continue to run, unless previously exhausted, until the ship stops waiting. The Laytime exceptions apply to the waiting time so of the ship is not already on demurrage. When the waiting time ends, time ceases to count & restarts when the ship reaches the loading / discharge berth subject to the giving of a notice of readiness, if one is required by the charter party and to any notice time provided for in the charter party unless the ship is by then on demurrage.
26) Whether in Berth or NO Berth- means that if the location named for loading / discharge is a berth and if the berth is not immediately accessible to the ship a notice of readiness cannot be given when the ship has arrived at the port in which the berth is situated.
27) Demurrage- means that money payable to the owner for delay for which the owner is not responsible in loading /discharging when the Laytime has expired.
28) On Demurrage- means that the Laytime has expired. Unless the charter party expressly provides to the contrary the time on demurrage will not be subject to the Laytime exceptions.
29) Despatch Money or Despatch- means the money payable by the owner if the ship completes loading or discharging before the Laytime has expired.
30) All Time Saved- means the time saved to the ship from the completion of loading / discharging to the expiry of the Laytime including periods excepted from Laytime.
31) All Working Time Saved or All time Saved- means the time saved to the ship from the completion of loading / discharging to the expiry of all the Laytime excluding any notice time & periods excepted from the Laytime.
Paper 1
Question 1
A vessel is to load a full cargo of heavy grain at a Canadian port for the
Rotterdam / Hamburg area. The Charter Party provided 25,000 tonnes with 5% more
or less at vessels option, 8days for all purposes ( Sunday & holidays exempt )
Fre3ight @ $15.75 F.I.O.T., dead freight @ $ 15,75 per tonne.
Demurrage & Despatch at $4500.00 / $2000.00 per day, pro-rata...
Lay days to commence at loading port as soon as vessel on berth.
Notice of readiness handed in and at discharge port as soon as vessel on berth
ready to discharge.
Vessel arrived at Thunder Bay, at 15:00 hrs. on Thursday, June 15th. and Notice
of Readiness handed in at 16:00 hrs.
Master declared his dead freight to be 26,050 tonnes. Loading began 18:00 hrs
June 15th. and the following is extracts from the loading log.
June 15th. 18:00 � 22:00 3000 tonnes
June 16th. 08:00 � 22:00 9000 tonnes
June 17th. 08:00 � 22:00 8500 tonnes
June 18th. 08:00 � 14:00 5100 tonnes
Vessel completed loafing at 14:00hrs. June 18th. , departed for Rotterdam at
15:00 hours same day.
Arriving at 23:30 hours Friday June 30th. And discharging began at 08:00 hours
July 1st. (Saturday) and completed at 11:00 hours July 4th...
Draw up a statement of lay days and calculate how much is due the owner.
Question 2
Explain why it is necessary to have additional clauses attached to a Standard
Marine Insurance Policy. Define clearly 3 of the following insurance terms:
A) To and From
B) Perils of the sea
C) Barratry
D) Taking at sea
a) The Standard Form of Marine Insurance is Lloyd�s �S. & G.� Policy.
Opinion is divided as to the meaning of the letters S.G. some favour Ship and
Goods, others take them to mean Salutis Gratia (for the sake of safety), and
there is other suggested interpretations.
The policy in its present form dates from 1779 and is very antiquated in its
wording, but the meaning which the courts attach to practically every word has
been long ascertained, and on that account underwriters, merchants, ship owners,
and brokers have always been reluctant to accept suggestions that a new form is
desirable. Under modern conditions however, it is most unlikely that the
standard form will ever express all the requirements of the parties to marine
insurance contracts, so its defects are remedied by writing in or attaching
additional clauses. Then superfluous or inapplicable words in the body of the
policy itself are left undeleted, as it�s a rule that attaches or writing in
words of the policy with which they or on behalf of the insurer. The wording of
a policy is always deemed to be the enounce of the INSURER. And if there are
ambiguous words or phrases the Courts in construing the contract will always
give benefit of the doubt to the assured. Additional clauses mainly those known
as Institute Clauses.
A) AT & From- Where a ship is insured �At & From� a particular place, and she is at that place in good safety when the contract is concluded, the risk attaches immediately. If she is not at that place when the contract is concluded, the risk attaches as soon as she arrives there in good safety, and unless the policy otherwise provides, it is immaterial the she is covered by another policy for a specific time after arrival. To avoid overlapping policies a clause may be inserted to the effect that the risk is not to attach until previous policies have expired.
B) Perils Of The Sea- The term �perils of the sea� refers to only to futuretive accidents or casualties of the sea. It does not include the ordinary actions of winds and ways. The object of the insurance is to indemnify the assured in respect of losses arising from accidents that may happen, not in respect of events that must happen.
C) Barratry- The term �barratry� includes every wrongful act willfully committed by the master or crew to the prejudice of the owner, or as the case may be, the charterer. Acts of barratry includes such things as willfully casting away the vessel, or willfully running her ashore with malicious intent, sailing in breach of an embargo, willfully assisting illegal immigrants, smuggling without the owners consent. Obviously if the owner himself is engaged in smuggling, that is not barratry. A ship owner cannot commit barratry against him.
D) Surprisals and Taking at Sea- The former term has much the same meaning as �capture� which the later appears to relate to the stopping of neutral merchant ships in wartime if they are suspected of carrying contraband, and taking them into ports for examination and possible confiscation of the contraband goods.
Question 3
What is the purpose of the York / Antwerp Rules and what is the significance of the numbered and lettered rules? Explain how the owner of a jettisoned cargo would be compensated under these rules.
The basic principle of General Average is that a person whose property is sacrificed for the general benefit should have his loss made good by all those who have benefited, and this principle has been put into practice for many centuries. However, certain difference of detail exists in the laws of various countries and these differences can give rise to uncertainty and c complications when adjustments take place in more than one country. For this reason ship owners, merchants, underwrites and adjusters have collaborated to produce a standard set of rules.
Even now if these rules are not incorporated. The general law still prevails. These rules consists of 7 rules lettered, �A to G� covering general principles and 20 numbered rules covering special circumstances. These Rules are known as The York / Antwerp Rules.
As far as jettisoning of cargo goes, according to the rules, Rule #1 states that �No Jettisoning of Cargo shall be made good as general average, unless such cargo is carried in accordance with the recognized custom of the trade�.
Rule #2 states that �Damage done to a ship and cargo or either of them, by or in consequence of a sacrifice made for the safety of the common safety, and by water which goes down a ships hatches opened, or other opening made for the purpose of making a jettison for the common safety, shall be made good as a general average�
So provided that the jettison was made from a ship that was rigged and stowed in accordance with the recognized customs of the trade, the owner of the cargo would be compensated by general average. If for dome reason the ship had stowed the cargo differently than normal custom dictate then there would be a particular average against the ship.
Question 4
A Bill of Lading contains a clause exempting the ship owner for liabilities for loss arising from the negligence of stevedores employed by them in discharging cargo. During ensuing voyage, vessel deviates from proper route. Discuss implications of this if the cargo owner subsequently claims for cargo damage by the stevedores.
In this question: From the wording it is assumed that the ship owner is to hire the stevedores. If this be the case, the stevedores are servants of the ships owner(s). Not only is the ship owner responsible for the default or negligence of the stevedores, but the master retains the duty of supervising and controlling the loading and storage. If he is to have any recourse against the stevedores at all, the master must immediately upon finding damage notify the stevedore foreman or some other appointed person in writing and fill out a �Stevedore Damage Report� and try to get the foreman to sign this. With respect to claims for loss or damage to cargo and or baggage, the liability of the stevedores shall be limited to physical damage caused by the negligence of the stevedores, and to such claims that results from fraud on the part of the employees of the stevedores engaged in delivering, receiving, and patching of cargo.
As far as the deviation is concerned, it would have to be decided if it were excused. First if it is excusable the carriers insurance is still good, however if it were excusable his insurance his insurance would be void. If it were a Voyage Policy, the voyage must be prosecuted with reasonable Despatch. Any unusual delay will void the policy. If the policy was voided by deviation, and cargo damaged accrued during discharge, ships owners only recourse is against the stevedores for physical damage done, and only if all the proper paperwork was carried out at the time of damage occurring.
As Master of a Canadian ship in a West African port you have received a verbal complaint from several crew members that the vessel is allegedly unseaworthy. What rights have the crew under the law & what action would you take to protect the interest of the owners & yourself?
{(From Business & Law) Pertains to the British System}
Section 23 provides that if a seaman employed in a U, K Registered ship
considers he has cause to complain about the master or any of the seamen
onboard, or about conditions on board he may complain to the master. If
dissatisfied with the action taken by the master on the complaint or by his
failure to take action, he may state his dissatisfaction and, if the ship is
outside the UK he can claim to complain to a proper officer. The Master must
thereupon, make adequate arrangements to enable the seaman to do so as soon as
service of the ship permits. Failure by the master to comply will make him
liable, on summary conviction to a fine of not exceeding 200.00 Pounds Sterling.
The N.M.B. Yearbook contains a recommended �Complaints Procedure� which if
followed, would involve a seaman, and only when that fails to give satisfaction,
would the complaint be referred to the master. It is to be understood that no
one making a complaint in good faith will be penalized in any way for making a
complaint.
S-9 Under �Facilities For Making Complaints�
233(1) Where a seaman or apprentice while on board ship, states to the master of
that ship his desire to make a complaint to a Justice of the Peace�, consular
officer, or officer in command of Her Majesty�s ship or one of her Majesty�s
Canadian Ships against the master or any of the crew, the master shall as soon
as the service of the ship permits:
A) if the ship is then at a place where there is such a justice or officers as
aforementioned, after such statement, and
B) if the ship is not then at such place, after its first arrival at such place,
Allow the complainant to go ashore or send him ashore in proper custody. Or in
the case of a complaint to a naval officer, so that he may be enabled to make
his complaint.
C) If the master of the ship fails without reasonable cause, to comply with this
section he is foe each offence liable to a fine of not exceeding $50.00
That basically sums up the rights of the person making the complaint. The only
other section that might apply is 452 thru 459 pertaining to �Ships Alleged to
be Unseaworthy, but really only when crew have deserted because of it.
Question 6
Detail the three main ways which IMCO attempts to promote International Marine Safety. Comment on these & give one example of each.
IMCO The Inter-governmental Maritime Consulting Organization is attempting to
promote International Safety by;
1) implementing world wide Standards of training for Maritime crews.
2) Implementing high construction performance standards for vessels.
3) Implementing world wide standard safety precautions for carriage of bulk
cargo and dangerous cargo by sea.
Examples:
1)In the case if implementing world wide high minimum standards for training of
seagoing personnel they have started and improved several training centers, one
at Belen in Northern Brazil.
2) In the case of implementing high construction and performance standards for
vessels and their equipment they have started a Shipbuilding Research Institute
at Verna Bulgaria.
3) in the case of implementing world wide Standards in safety precautions for
the carriage of bulk cargos and dangerous gods they have published a Maritime
Dangerous Goods Code which will be continuously updated.
Question 7
Give a concise summary of the five principals parts of the Oil Pollution
Regulations.
1) Part 1 applies to pollution of Canadian Waters, Territorial Seas, Fishing
Zones and All Canadian Waters north of parallel 60 degrees North Latitude, that
are with in a safety shipping zone
2) Part 2 applies to pollution of waters other than in Part 1 (excepting the
safety shipping control zone) with certain exceptions for vessels of certain
tonnages or categories of operation.
3) Part 3 deals with responsibilities & procedures to be followed while
bunkering, cargo handling of pollutants and ballasting
4) Part 4 is a schedule of the locations of Pollution Prevention Officers &
Steamship Inspectors.
5) Part 5 is a schedule of all the information to be contained and entered into
the Oil Record Book.
Paper 2
Question 1
Charter Party reads: Vessel to precede to Eastport Canada, to load 15,000 tonnes potatoes for Sao Georgio, South America. Loading rate, 3000 tonnes per day, S&H.E. (Sunday & Holidays Exempted)
Discharge rate of 2,000 tonnes per day S&H.E., Charterer has the right to average laydays. Laydays to commence at loading / discharge ports at 08:00 hours after berth vessel was on berth & reported ready. Work done before Laytime commences and on Sundays to count as half. Demurrage paid at half rate of $4,000.00 per day & pro-rata. Despatch paid at half the demurrage.
Vessel berthed at 12:30 hours Wednesday, April 3rd, and reported ready to load. Loading commenced 13:00 hours on the same day and ceased at 13:00. Work resumed on April 4th and daily thereafter, at 08:00 hours and ceased daily at 17:00 hours, Sunday included. Completed loading at 14:00 hours Wednesday April 10th, vessel sailed at 15:00 hours that day.
Vessel arrived at Sao Georgio at 15:00 hours Friday April 20 and reported ready 19:30 hours, Commenced discharging at 18:00 hours, and ceased at 22:00 hours that evening. Work resumed April 21 and each day 08:00 hours and ceased at 17:00 hours, Sunday included. Vessel completed discharge at 10:30 hours. Wednesday April 25th,
Give statement of laydays and amount of Despatch / Demurrage.
Question 2
Freight is payable in full on damaged cargo, even though the contract states that it is due on �Right & true Delivery of the cargo�. Give details of two qualifications of this statement.
Freight on damaged goods is due in full but will be subject to counter claim for damages unless the carrier is protected by exemption clauses in the contract of affreightment or by common law exemptions. However if goods are so badly damaged that they have ceased to be goods of the kind shipped then no freight can be claimed.
As for the qualifications are concerned, The �Right & True Delivery of Cargo� doesn�t necessarily pertain to the condition of the cargo, just the delivery of cargo. i.e.: Whether or not all the necessary notifications, paperwork, arrival & unloading procedure have been complied with. The second Qualification, would be that the carrier should have exercised due diligence in carrying the cargo.
Question 3
Why are liner B/L usually more detailed than B/L issued where a voyage charter
exists. (Bill of Lading)
Usually a B/L issued pursuant to a Charter Party is much shorter and a more
simple document than a liner B/L because th4 detailed provisions of the contract
contained in the C/P are incorporated in the B/L by reference.
Whereas a Liner B/L issued by the owner or charterer of a general ship, and so
far as the shipper and consignee are concerned is in no way related to any
charter party.
The detailed contents of such bills vary widely according to the nature of the
trade in which the companies ships are engaged, but a liner B/l is primary
contract of affreightment rather than a C/P.
Question 4
Describe briefly the objective and function of IMCO. When does the convention adopted by IMCO become legal in Canada?
IMCO changed its name to the INTERNATIONAL MARITIME ORGANIZATION (IMO) on the 22nd. Of May 1982. The first objective of the IMO is to facilitate cooperation amongst governments in technical matters of all kinds affecting shipping. Its aim is to achieve the highest practicable standards of maritime safety and efficient navigation. It has a special responsibility in the exchange of information between nations on all technical maritime matters.
A further purpose of the IMO is to promote the best possible availability of shipping services to meet the world wide need for overseas transport by discouraging discrimination, unfair & restrictive practices affecting ships in international trade. The IMO is also required to give advise to other international bodies on shipping matters including agencies of the United Nations.
In the legal field, the Legal Committee of IMO was involved in the work which resulted in two Conventions on Oil Pollution which came into force in 1975 and in the setting up of the International Compensation Fund.
It is further involved in work on the international combined transport of goods, the accumulation of ocean data acquisition systems and the maritime carriage of nuclear substances.
A Convention adopted by IMO become legal in Canada when it has:
1) been approved by Canada. ( Act of Parliament)
2) twelve months after the date on which, not less than twenty five states, the
combined fleets of which contribute not less than 50% of the gross tonnage of
the worlds merchant shipping have signed it.
Question 5
Under what conditions may a common carrier legally refuse goods being offered for carriage? Under common law when is a common carrier, absolved from the responsibility for loss or injury to goods?
A) A common carrier is a carrier who, for hire or reward holds himself ready to carry from one terminus to another the goods of any person, who chooses to employ him for that purpose. Such a carrier, therefore, cannot pick and choose his customers. He is bound to charge reasonably prices for his services, but not bound to charge a uniform price. He must accept and carry whatever goods are offered for carriage unless:
1) his carriage is already full
2) the goods offered is not of the kind that he is accustomed to carry.
3) The destination of the goods is not on his accustomed route,
4) The goods are of a specially dangerous nature so that the carriage of them
would involve extra ordinary risk.
5) The goods would be harmful to others he had already accepted.
B) The customer must deliver the goods to be carried to the carrier, and the carrier has possession of the goods carried. (LIEN FOR FREIGHT) A common carrier is absolutely responsible for the goods carried and for delivery without unreasonable order and condition so when received, but he is not liable at common law for any loss or injury arising from:
1) Acts of God
2) Restraint by Ruler, Prince or People
3) Queens enemies
4) Jettison for the common benefit (general average sacrifice)
5) Negligence of the consignee; (inadequate packing act)
6) Inherent vise or defects of the goods
The above exceptions apart, a common carrier is liable for any loss or damage to the goods he carries even though he had not been negligent
Question 6
Under what conditions may a shipping master or consular officer allow a young person under 18 years of age to be employed on board a vessel if the person does not have a valid medical certificate?
Sec. 272(6) Employment of Children & Young Persons. No person under the age of eighteen years shall be engaged in any capacity in any vessel unless there has been delivered to the master of the vessel a certificate granted by a duly qualified medical practitioner certifying that such person is fit to be employed in that capacity.
(7) A shipping Master or Consular officer may on the grounds of urgency authorize a person under eighteen years of age to be employed on board a vessel not withstanding that no such certificate as aforesaid has been delivered to the master of the vessel, but the person in whose case any such authorization is given shall not be employed beyond the first port at which the vessel calls after such person has embarked thereon. Except subject to & in accordance with subsection (6).
Question 7
What are the functions of Institute Warranties in Marine Insurance and how may the owner of a general trader exempt himself from provisions of such warranties?
In policies on vessels of the �LINER �class it is usual to include a warranty
that such vessel will be employed only in their �normal regular services�, that
is to say within well defined limits. Owners of vessels of the �Tramp� class
however will require freedom to trade within very much wider limits. Accordingly
the Institute Warranties are designed to fit the standard trading limits of
vessels not engaged in regular services; These warranties are six in number. Of
which four put a ban on trading in certain ice bound regions in the far North.
The fifth prohibits trading in certain Antarctic Regions, and the sixth
prohibits carriage of Indian Coal between March 1th.,and September 30th., except
near Asiatic ports between certain dates, Owner who wish to employ their vessels
in the prohibited areas or in prohibited trade may take advantage of clause # 5
of the Institute Time Clause ( Hulls) which reads � Held Covered in case of Any
Breach of warranties as to cargo, trade, locality, towage, salvage & services or
date of sailing, provided notice to be given immediately after receipt of advise
and any additional premium required be agreed.
Paper 3
Question 1
A vessel is chartered to load 16,000.00 tonnes +/- 5%. Charter Party stipulates charters to appoint stevedores paid for by owners @ $15.00 / tonne. Laydays start at 08:00 hours day after Notice of Readiness is served and accepted & time used before to count �. Agreed 6 running days, demurrage @ $1,500.00 / day. Deadfreight @ $50.00 / tonne. Loading rate 3,000 tonnes / day. (S&HE). Vessel arrived on berth & N.O.R (notice of readiness) served at 11:00 hours Thursday Aug. 16th. Master declaring Deadfreight to be 16,500 tonnes, accepted by charterer. Vessel commenced loading @ 13:00 hours and ceased at 17:00. Having loaded 400 tonnes. Vessel resumed loading at 08:00hours Aug. 17th.
Aug 17th. 2000 tonnes
Aug 18th. 2500 tonnes
Aug 19th Nil tonnes
Aug 20th. 1800 tonnes
Aug 21st. 2300 tonnes
Aug 22nd. 1200 tonnes
Aug 23rd. 1820 tonnes
Aug 24th. 900 tonnes
Aug 25th. 1200 tonnes
Aug26th. 1000 tonnes
Aug 27th. 700 tonnes
No more cargo was forthcoming. At 08:00 Aug 28th. Vessel shifted to bunker, returning berth at 19:00 hours. When may vessel sail? What demurrage is due?
* Demurrage days expire at 03:00 hours Aug. 30th., at which time vessel may
leave as shipper is in Breach of Contract.
Question 2
What is the purpose of the INCHMAREE Clause? What is the Machinery CO, /
Insurance clause, and how does it affect the Inchmaree clause?
INCHNAREE CLAUSE. This was introduced into hull policies following a decision
that the damaging of a donkey pump on the �S.S. Inchmaree� due to the stopping
up of a valve, was not the loss by peril of the seas nor covered by negligence
of, master, mariners, engineers, and pilots. The category afforded by the clause
has been gradually widened and it now covers not only negligence as above, but
also all loss of, or damage to hull or machinery directly caused by:
1) Accidents in loading, discharging or handling cargo (stevedore damage)
2) Accidents in bunkering or loading of fuel.
3) Explosions either on board vessel or elsewhere
4) Bursting of boilers
5) Breakage of shafts
6) Latent defects in hull or machinery, but with a proviso that the cost of repairing or renewing the defective part is not recoverable.
7) Contact with aircraft
Any losses claimed under this clause must satisfy the franchise conditions in the policy. The losses must be due to lack of due diligence by ship owners or managers. When the master, Mate or crew members or the pilot hold shares in the vessel they are no considered as part owners within the meaning of this clause. Losses due to negligence of person other than those indicated are not covered by the clause. The words �Directly Caused By� are now important. A boiler burst, this is not covered, but the damage caused by it bursting is covered. Water damage ect. This form of insurance is meant to cover against what may happen, not what must happen. A �Liner Negligence Clause� which does give a more comprehensive cover than the �Tramp� form of negligence.
Question 3
Under what five headings are entries made on the Oil Records Book of a vessel over 150 tonnes that is not a tanker.
a) Ballasting or cleaning of Bunker Fuel tanks
b) Discharge of Water Ballast from bunker fuel tanks
c) Disposal of Oil Residues
d) Discharge overboard of bilge water containing oil that has accumulated in the bilges
e) Accidental or exceptional discharge of oil or an oily nature
f) Hydraulic test of ships Flexible transfer hose and pipes
Question 4
What is an average adjuster and who is responsible for appointing him? What relevant documents must he see before compiling adjustment average?
AVERAGE ADJUSTER, An average adjuster is one who specializes in the stating of marine losses. Adjusters both here and in England have formed themselves into associations with a view to making practice uniform and keeping it on a high plane. The stating of General Averages, Particular Averages on vessels and Collision Claims usually demands the services of an average adjuster who is normally appointed by the ship owner, are paid by the parties on whom losses fall.
Particular Averages on cargo may on occasion be fully as complicated as those on vessel, but underwrites normally maintain loss displacements capable of handling these claims and will not pay average adjusters fees unless the underwrites ask for a statement by a professional adjuster...
Question 5
What are ILO and International seafarers code?
United Nations > International Labour Organization
- UN agency promoting decent work and social safety nets by setting and
supervising international labor standards in the form of conventions and
recommendations.
"In an uncertain world, an organization must have a clear sense of its objectives and strategies. Tactics and specific activities may have to be adjusted quickly to meet changing circumstances, but this should be done with a clear sense of purpose. The organizing theme for the period 2002-05 is putting the decent work agenda into practice."
Promote and realize standards and fundamental principles and rights at work
Create greater opportunities for women and men to secure decent employment and income
Enhance the coverage and effectiveness of social protection for all
Strengthen tripartism and social dialogue
Cross-cutting activities
Question 6
With the aid of a sketch describe the traffic separation schemes leading into an imaginary port.
Question 7
Define �Leading� in a compulsory Canadian Pilotage Are; can a ship be charged dues for this service?
Sec. 338 (1) Where any vessel having on board a licensed pilot leads any ship that does not have a pilot on board when such last mentioned ship cannot be boarded by reason of circumstance existing at the time, be boarded, the pilot so leading such last mentioned ship is entitled to full Pilotage dues for the distance run, so as if he had actually been on board such ship.
(2)Such pilot while leading such last mentioned ship, shall keep his pilot flag flying, and such mentioned last ship shall while being led, show the ensign of such ship at its fore.
Question 8
Enumerate the services a Canadian Consul can render to the master of a Canadian ship in a foreign port.
CONSULAR OFFICER means a consular officer of Canada or any person for the time being discharging the duties of a consular officer of Canada, and in the absence of a consular officer of Canada, or such person, means a consul general of the UK, the latter discharging the duties of consul general or vice consul of the UK. And when used in relation to a country other than Canada, �Consular Officer� means the officer recognized by Her Majesty, as a consular officer of that country.
Duties of Consular Officer With Respect to Ships.
1. Supervision of Engagement & Discharge Canadian & British seamen
2. Review Official Log & Voyage Records covering discipline.
3. Completes & Signs Official Documents relating to Voyage.
4. Boarding vessel where seamen is to be discharged.
5. Advises Master of vessel engaging or discharging crew�s legalities under CSA, or MSA & rights of crew members.
6. Checking entries in Official Log, RE: compliance with CSA.
7 Arbitrates disputes between Master& Crew.
8. Investigates Infractions of the CSA & Regulations.
9. Investigating Crew complaints
10. Signing & Issuing Statutory Documents & Authorizations.
11. Interviewing seamen & others seeking Positions on vessels and direct them to appropriate place.
12. Accepting payments on account.
Question 6
What are the three functions of the Bill of Lading? What rules apply when the Charter Party and Bill of Lading clauses differ and the shipper is also the charterer?
In respect of goods shipped in a general ship a Bill of Lading fulfills three separate functions as follows:-
1) It is a receipt signed by the master or the agent on behalf of the ship owner, for goods received on board or elsewhere into the shipowner�s custody.
2) It is evidence of a contract between a shipper and a carrier for the carriage of goods by sea. In itself it is not a contract in the sense of being a document signed & witnessed by or on behalf of both parties. It is signed only by the shipowner�s representative whose signature is not customarily witnessed. The original contract may be made by mouth or in some other way, but the fact that a Bill of Lading has been issued provides evidence that a contract exists. It may evidence the whole contract or only a part thereof.
3) It is a document of Title to the goods described in it, that is in the absence of proof of fraud, or in the absence of an intention that the B/L should not acquire ownership of the goods, the holder of a B/L for the time being is regarded as the rightful owner of the property described in the bill.
When the charter party is also the holder of the B/L. Briefly, the rules are:
A) A B/L in the hands of the ship, who is also the charterer, is merely a receipt and not a contract document at all. So long as the B/L remains in his hands the goods are carried on C/P terms. This may be qualified, if it appears from the wording of the two documents that the shipowner & charterer intended the C/P terms to be varied by the B/L, in which case the B/L terms apply.
B) Between a shipper, who is not the charterer, and the shipowner, the goods are carried on B/L terms unless the shipper proves that the B/L inaccurately records their agreement in some particular way.
C) In the hands of an endorsee or consignee from a shipper who is also the charterer the B/L is conclusive evidence of the terms of carriage in accordance with Sec. I of the Bill of Lading Act, 1855.
D) In the hands of and endorsee who is also the charterer the goods are carried on B/L terns, provided that the charterer acquires his title to the goods under, and on the terms of the B/L.
Question 7
What is Lloyd�s Standard Form of Salvage Agreement and what are the advantages to:-
1) The owner of the salved ship?
2) The Insurance Underwrite?
3) The Salvor?
The form of agreement almost universally employed nowadays is the Lloyd�s Standard Form of Salvage Agreement with which a number of advantages are associated. These as:
1) The owner of the property in danger benefits from �NO CURE _ NO PAY� principle.
2) The Salvor benefits by having an agreement which can be obtained in a few moments, and which is not likely to be contested. He also retains his rights of lien.
3) All parties benefit from the provision of the agreement that salvors remuneration shall be referred to arbitration, (Unless parties agree otherwise)
4) Underwrites of the property in danger benefit because their liability cannot be increased beyond liability for total loss. That is to say they will not, under the �No Cure � No Pay� principle, become liable for Suing & Labour charges as will in the event of total loss.
Paper 4
Question 1
A vessel of 3,021 N.R.T was chartered to load and discharge a full cargo in 12 running days. (Bunkering time, S & HE). The charter party stated, Lay Days were to commence when vessel was on the berth in all respects ready to load/discharge cargo. Demurrage at $ 3,000.00/day/ProRata, Despatch at half the Demurrage rate.
Thursday April 4th. 08:00 vessel arrived, loading Port. 12:00 On Berth ready to load
Saturday April 8th. 08:00 ceased loading, left berth for Bunkering Wharf. 09:00 Bunkering commenced. 12:00 Bunkering complete. 13:00 On loading berth, resume Loading.
Monday April 10th. 11:30 Completed loading. 12:00 Sailed from Loading port.
Sunday April 23rd. 19:30 Arrive discharge port.
Monday April 24th. 07:00 Berthed and ready to discharge. 08:00 Commenced to discharge.
Saturday April 29th. 18:00 Completed discharge. 19:00 Sailed from discharge port.
Draw up a statement of Lay Days, and calculate the amount of Demurrage/Despatch payable.
Question 2
Explain briefly from the shippers point of view, the four main reasons for taking out marine insurance.
1) To be able to protect against loss or damage
2) To be able to borrow against the cargo shipped
3) To be able to sell the cargo enroute
4) To be protected against General Average Claims.
Question 3
Define the term �Substitute Expenses� as applied to a general average act. Illustrate your answer with an example.
This expression covers expenses which are incurred instead of other expenses which would have been allowed as general average. The following example may explain the position:
Should a vessel have to be drydocked on a port of refuge, the master may have the choice of discharging the cargo before drydocking the ship & keeping the cargo onboard, assuming of course, the Drydock Company gives its approval & there are no objections on the part of the ship. The latter procedure means a saving of discharging , storage and reloading charges, but the expense for the drydocking will be higher. If drydocking with cargo on board:- Under the B/L terms shipowners have the liberty to Drydock with cargo onboard:- is more advantageous, it is reasonable that extra expenses for drydocking are allowed able as general average instead of the expense of discharging, storage, and reloading.
Needless to say, the �Substitute Expense� may not exceed the expenses that have been saved.
Question 4
In a voyage from Sommerside P.E.I/ to Italy, a vessel puts into the Azores to fill her bunkers to capacity. The vessel had on leaving Sommerside sufficient fuel, plus reserves to complete the voyage to Italy but the bunkers were cheaper in the Azores than in Italy. Discuss the implications of Deviation in this case.
Answer on the front page...
Question 5
A ship had a breakdown in the refrigeration machinery which resulted in a total loss of Freezer Cargo. A clause was in the liners bill of lading to the effect that the �Carrier was not responsible for the breakdown of refrigeration machinery�
To be fully covered by this clause what would the carrier do have to do?
A special clause is required by the particular nature of the goods e.g. for refrigeration cargo �Carrier not responsible for breakdown of refrigeration machinery�. {Here also to be protected by the clause, the carrier would have to show that first class machinery and spares were installed, and that properly qualified maintenance personnel were engaged.
Question 6
Describe the two basic stages which an International Convention, adopted under the auspices of IMCO comes into force.
Answer, paper 2 question # 4
Question 7
Entering a Canadian port, as master you have reason to believe that the licensed pilot�s actions are endangering your vessel.
A) What action would you take in the circumstances?
B) What is the legal authority for such action?
C) What are you specifically required to do in connection with this incident?
The master has ultimate authority of the vessel movements. If the master fells the pilot is leading the ship & or crew into danger, he should assume command at once, informing the pilot that he is doing so, and request him to standby and make the master aware of any knowledge he has that might be helpful in the situation.
As soon as practicable thereafter the master should send a full written account of why he assumed command from the pilot to the governing Pilotage authority, and cause the same to be entered in the Official Log and send a copy to the Minister stating the situation that existed and reasons for overriding the pilots advise.
The Canada Shipping Act authorizes the master to override the pilot�s actions if circumstances warrants same.
Paper 5
Question 1
Same as Paper #2 question #1.
Question 2
Same as paper # 2 question #2
Question 3
Same as paper # 2 question # 3
Question 4
Same as paper # 2 question # 4
Paper # 4 question # 6
Question 5
Same as paper # 2 question # 5
Question 6
Same as paper #2 question # 6
Question 7
Same as paper # 2 question # 7
Paper 6
Question 1
A Charter Party states that a vessel is to load 7084 tonnes of grain at 920
tonnes per weather working days, S&HE. Laydays to commence 24 hours after notice
of readiness tendered and accepted.
Notice of Readiness will be accepted between 0900 hours � 1700 hours, Monday to Friday, 0900 hours � 1100 hours Saturday.
Laytime will not be counted from 1300 hours Saturday to 0700 hours Monday.
Demurrage at $ 3500.00 per day. Despatch at $ 1750.00 per day, pro rata...
Notice of Readiness given and accepted on Tuesday 14th. At 1300 hours, Loading commenced at 1600hours the same day. Bad weather prevented loading on Saturday March 18th. 0900 hours to 1100 hours and on Thursday March 21st. 1300 hours to 1600 hours. Loading was completed on March 27th. At 1130 hours.
Calculate demurrage or dispatch owing.
Question 2
Discuss �Open Cover Clause� Marine Insurance Policy. Outline advantages to a regular exporter. How long is it written for?
This expression is commonly used for an agreement whereby the assured is automatically covered foe all shipments up to a specified limit per vessel. For certain voyages during the period agreed upon e.g. 12 months. At specified premiums or at rates to be arranged.
An �Open Cover� has much in common with a floating policy. Under the conditions of a floating policy premiums have to be paid in advance. As soon as the various declarations have reached the amount the floating policy was issued for. A new policy must be taken out.
Question 3
Ship loads at Montreal. Cargo gear falls down in hold, Repairs made. Loading completed. Vessel sails. Enroute V/L hits submerged object and propeller damaged. V/L declared unfit to withstand perils of the sea. V/L drydocked at Quebec City for inspection and repairs. Discuss and give reason for general and particular average.
Particular Average only relate to damage &/or expenses which are exclusively borne by the owners of vessel which sustained damage as a result of heave weather or by owners of the cargo, which has been damaged in transit e.g. damage through leakage or foe which extra expense had incurred. In case of particular average there is no question of common interest, such in contrast with general average. Each interest will have to bear its own loss and there is no reason for damage or expenses being apportioned between the interests concerned.
General Average There is a general average act when and only when any extra ordinary sacrifice or expenditure is �Intentionally� and �Reasonably� made or incurred for the common safety for the purpose of preserving from peril, the property involved in a �Common Marine Adventure�.
Question 7
On July 10th. 1978, Mr. Jack Farr signs on as 2nd. Mate at a monthly salary of $1,423.30. He made out an allotment of $600.00 per month. He was promoted to first mate from Sept. 7th. To Oct. 7th. At a salary of $1,807.50 per month. In Liverpool he took a cash advance of 75.00 pounds sterling. His canteen bill was $65.00. He earned 250 hours of overtime at $6.35/hour and 125 hours overtime at $9.53/hour. His Union dues were $18.00 per month, health insurance $14.00 per month, and income tax of $ 2,500.00 total.
Calculate his balance of wages on leaving the ship Nov. 23rd. 1978. Balance due upon discharge.
