FREIGHT TERMINOLOGY

FREIGHT TERMINOLOGY

LAY TIME

Is a word used to describe how many days, hours and minutes the loading and unloading will take. Lay time : The amount of loading and unloading per day The amount loaded or to be loaded on board

As the expenses of this process have been added to the freight charges agreed between parties, no extra fees will be demanded for this process. Lay time is determined with a "Notice of Readiness". This is why it is important that submission, receival and acceptance dates and times are written.

By adding the clause "Weather Working Days" while processing the lay time, any negative effect of weather will not cause any ill effect on the loading/unloading. Also with clauses such as SHEX (Sunday Holiday Excepted) or FHEX (Friday Holiday Excepted) the lay time period can be extended. In addition, the clause "Even if Used" shows that is holiday days are considered as work days, Friday and Sunday and other holiday days will not be considered in the lay time period and will be processed as demurrage ( a situation in favour of the carrier ).

DEMURRAGE

It is the agreed fee that the client agrees to pay when the lay time period is exceeded. Once the determined lay time period has ceased, if the loading and unloading is not completed the client is obligated to pay the carrier demurrage fees. Demurrage can also be identified as container rent. Whether the Bill of Lading shows the correct or incorrect amount, it shows the amount legally payable. If any fee has not been determined, the fee decided by a court of law will be valid.

Clauses regarding lay time and demurrage are identified as article 1030 in the Turkish Penal Law.

Warehouse (Storage)

It is the rent paid by every transportation vehicle that enters the port. The storage costs increase in parallel to the period of time spent. The client is obligated to pay the storage fee for a loaded container and the shipping agency is obligated to pay the fee for an empty container. No storage fees are applied to loaded export containers for the first three days. However, the storage fee process goes into action the moment the container reaches the port. This fee is payable to the port authorities.

BOOKING NOTE

The client, when in need of sea freight, will discuss the freight details, delivery port, port of loading and date with an agency or with a freight company. If an agreement is made, a "Booking Note" is signed by both parties. Adding an optional period to the booking note resolves the problem of the booking note being considered as a contract. The agreement is non-valid at the end of the optional period.

SHIPPING NOTE / MATE'S RECEIPT

After both parties have made an agreement on the booking note and before delivering a shipping note to the client for the goods to be loaded, the agency or shipping company must receive a letter of request from the client. The shipping note which is made up of three (3) copies is given to the loading party and ensures the loading of the freight. The three copies that are prepared:

* Once the action of loading has been finalised, this copy will be signed by the captain or the first mate, stamped with the ship seal and then returned to the loader. Any damage to the freight, packaging and/or any other aspects regarding the load will be noted on this copy and signed. As the proof of how the shipment was loaded on board is within this copy, the agency can then hand over the bill of lading to the client.

* This copy signed by the agency will stay on board the ship. The ship captain will be able to check the load during shipping or unloading with the other documents (manifesto, bill of lading etc.) the agency has prepared together with this copy.

* Safeguarded by the agency, the final copy will be added to the ship file together with the clients booking note and the non-sale copy of the bill of lading.

MANİFESTO

Is the document that shows what the freight is, the weight, how it is packed, who it will be delivered to etc. The manifesto is prepared by the clients agency and sent to the agency at the destination port. The agency at the port of unloading will translate the document and hand in the document to customs within 24 hours. Once the freight reaches port, it is checked with the translated manifesto and if seen appropriate the ship is directed to unload. If the ship is to dock at more than one port, a manifesto for each port is prepared and sent to the relevant ports. If any loading is to be commenced at the other ports, agencies at those ports will prepare manifestoes and send them to those ports. As the freight on board is under the jurisdiction of customs, the manifesto therefore is an important document. The manifesto under no circumstances will show the cost of shipping and is only a document which specifies the goods on board the ship.

DISPATCH

The client has the right to ask for return fees from the agency or vessel owner if the loading and unloading is finalised before the determined lay time period. This is usually half the amount of the demurrage fee. If the clause "Free Dispatch" is used, any possible dispatch fees are overridden.

Bill of Lading (Turkish Code of Commerce 5th Division Clause 1097-1118)

It is a valuable document showing how in what state and situation the freight was loaded on board, how the freight should be carried and who the freight should be handed too. It is a document which also shows the owner of the freight together with the sealed container number, to whom the freight has been organized and endorsed for and shows that all lawful rights and responsibilities stemming any situation belong to that person. The B.O.L(Bill of Lading) is the document that identifies that the loading has been finalised or will be finalised. According to the Turkish Code of Commerce clause 1098, the information to be registered on a B.O.L should be as below:

* Name and Surname of the captain * Name and Surname / Business Name of carrier * Name and Flag of ship * Name and surname / Business Name of client ( freight owner) * Name and Surname / Business Name of receiving party * Loading Port details * Unloading Port details and/or place of instruction * Type / Measurements / Number, weight or pieces / Brands / Cost and situation seen externally

The ship authority will add any necessary reservations, notes or information about the packaging to the shipping note (mate's receipt) that has been sent to the ship. One copy will be forwarded to the freight owner and the other copy to the vessel owner. The vessel owner or its agency will prepare a B.O.L according to the shipping note received and then forward it to the freight owner. Any B.O.L with the clause stated "Not Negotiable" cannot be endorsed or assigned to another person or company.

Received Bill of Lading: Is prepared when the freight does not need to be delivered to the ship. This type of B.O.L is prepared when the freight is handed over to the carrier to be transported (Received for shipment B.O.L).

On-Board Bill Of Lading: This B.O.L is subjugated as the On-Board B.O.L when it is verified that the freight has been put on the specified vessel on the specified date.

So as no disagreement occur during B.O.L process, it is important to note the below:

* When documents are asked for, to be able to present a complete file. * Any changes on documents must be confirmed by an authority from the vessel management or the agency. * In the situation that the B.O.L must be acceptable by a bank for financial payments if it carries any annotation that the packaging of the freight is limited or has been damaged in any way and has not received a Clean B.O.L. * The document should state the clause "On Board". * The document with the On Board annotation should be given a date, signed or given an abbreviated signature by the agency. * If the B.O.L has been prepared according to a promissory note, it should be a blank endorsement. * If the letter of credit mentions CF or CF contracts, "Freight Prepaid" should be noted on the B.O.L. * If the freight charges have been added to the invoice, "Freight Prepaid" should be noted on the B.O.L. * If the letter of credit states that the B.O.L should be prepared as a "Straight" B.O.L , then the B.O.L shouldn't be prepared for a promissory note. * The B.O.L should not carry a date later than the stated loading date written on the letter of credit. * The B.O.L must be commended within 21 days after date of loading. * The B.O.L must not carry any different information from that of the shipping note (mate's receipt) * The freight amount must be shown on the document with the process of letter of credit. * The loading should not be commenced at any other port other than written. * Unless authorised, no other Bill of Ladings should be given or prepared.

In the case of the loss of B.O.L, the vessel owner asks for a bank letter of guarantee for the receiving party. In this case, the clients must pay the bank interest every 3 months against the letter of guarantee. In Turkey, the guarantee period asked for is generally five (5) years.

Another solution would be to issue an advertisement of loss by decision of law. In this way a new B.O.L will be prepared. However a personal or bank undertaking may be required.