COMMERCIAL OPERATION OF MARITIME TRANSPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01043R002200220007-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 188
• Document Creation Date: December 27, 2016
• Document Release Date: July 12, 2013
• Sequence Number: 7
• Publication Date: May 20, 1958
• Content Type: REPORT

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STAT
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COMMERCIAL OPERATION OF
MARITIME fffIOTAY--
Kommercheskaya
Ekspluatatsiya
Morskogo Transporta
pp. 5-11, 21-29, 40-41,
?46, 48-500 83-90, 94-100,
105-107, 107-108, 113-124,
125-139, 326-333, 3.33r.3.;34A9t,
55117..---; 67
Moscow, iq
pp. 5-11
CHAPTER ONE. INTRODUCTION
STAT
A. Yu Pankratlyev
1. SIGNIFICANCE OF COMMERCIAL OPERATION IN THE WORK OF
MARITIME TRANSPORTATION.
Transportation is an independent branch of material
production.
Karl Marx .wrote: nIn addition to mining, agriculture,
and manufacturing, there is also a fourth branch of material
production, which in its development passes through the
various stages of production: handicraft, manufacturing
and machine production. This is the transportation industry,
1
regardless of whether it conveys people or goods."
Being an independent branch of production, in the same
manner as industry and agriculture, transportation is also a
general condition of production. Linking up all branches of
national economy and all economic regions, transportation ,
affords the conveyance of goods to the consumers. HA product
is only ready for consumption when it finishes this movement.n2
Thus transportation is an extension of the productive process
in the. sphere of circulation, Karl Marx says hereupon: "On
the one hand, the transport industry is an independent branch
of production'and consequently a special sphere for the La-
1. K. Marx, Theory of Surplus Value, (Vol. IV of Capital)
Part One, Gospolitizdat, 1954., p. 397.
2. K. Marx, Das Kapitall Vol. II, Gospolizdat, 1949, P. 14-7.
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01.1..01
vestment of productive capital. But on the other band, it is
distinguished by being an extension of the productive process,
within and for the circulation process."
Transportation does not create new goods and thus does
not increase the quantity of material wealth. However, trans-
portation costs increase the social cost of production of dis-
patched goods. The need follows from this to economize in
every way on the expenditure of social labor for transportation,
to reduce the time spent in delivering goods and to improve the
quality of transportation.
Socialist transportation has enormous advantages over
capitalist transportation. The waste of social labor, charac-
teristic of capitalism, is particularly apparent in the field
of circulation, where the route traveled by goods from producer
to consumer is filled with a host of middlemen and jobbers,
wholesalers and retailers. The reselling, reloading and re-
shipping of goods from one place to the other, resulting from
the anarchy of capitalist production, lead to enormous supple-
mentary expenditure. Large-scale irrational transportation
causes the unbalanced distribution of productive forces so
characteristic of capitalism.
The socialist planned economy, uniting all forms of trails-
portation into a single system, permits the most rational or-
ganization of transport for the national economy and the most
effective utilization of the means of transportation. The
practicability of a complex plan for operation of all forms of
transportation and the application of .a single tariff policy
afford the possibility to harmonize transportation activities
with the general interests of national economy.' The task of
1. OD. cit p. 148.
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socialist transportation workers is to increase the productivity
of labor in transportation, lower forwarding costs, deliver
goods to consumers as quickly as possible and thus lower cir-
culation costs. The basic means of lowering transportation
costs are the rationalization of the flow of cargo, expedite
deliveries, improved use of means of transportation and raising
the labor productivity in transportation.
The fifth five-year plan provided for considerable increase
of all means of transportation in order to meet fully the de-
mand of the growing economy of the USSR for transporting goods.
A high rate of increased cargo turnover in maritime transport
in the fifth five-year plan is called for by the necessity to
increase the proportion (specific weight) of maritime transport
in the countryts cargo turnover, particularly in the extreme
North and Far East, where the development of water transport
is lagging behind the growing needs of national economy. An
increase in the cargo turnover of water transport is also re-
quired by the need for re-distribution in the volume of transport
among the basic means of transportation through maximum ration-,
alization of the flow of cargo and through a reduction in long-
'haul railroad shipments.
There has been a marked increase in through shipments of
goods by water, and by combined -rail and water transport.. The
combined rail-water shipments are considerably reducing trans-
portation costs and are grsamoting-the most effective utiliZation
of the'countryts unified transportation network.
In accordance with the resolutions .of the Fifth Session
of the Supreme Soviet USSR and the September Plenum of the
Central Committee of the Communist Party of -the Soviet Union,
important tasks have been assigned to maritime transport of
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carrying out the transportation of raw materials and industrial
goods; in servicing coastal collective farms and state farms,
and in shipping agricultural produce to industrial centers.
Maritime transport must also undertake the large-scale develop-
ment of local, intra-rayon transportations chiefly by the max-
imum use of water transport, in shipping such items as the-local
supply of fuel, the output of handicraft-:cooperations, mineral-
construction materials; etc.
Besides continuously increasing the volume of transportation
of cargo, passengers and baggage, maritime transport should
steadily improve the qualitative standards of its work; guaran-
teeing the safety of cargo and speedy delivery to consumers
are the most important of these measures.
In its work, maritime tra46ort in the USSR is dealing
with enormous material values. The commercial workers and
other employees of the fleet are charged with the duty of
insuring the safety of valuable commodities entrusted to mari-
time transport and of delivering them swiftly. Reducing average
delivery periods in maritime transport by only one day frees
millions of roubles for the needs of national economy.
All of these tasks require of maritime transport a proper
organization for operating the fleet and handling commercial
operations.
Gaining profits in the work ,of maritime transport and'
fulfilling the state plan-for transportation depend to a great
extent on the quality of the organization of commercial operations.
Shortcomings in commercial dealings--inotrrect drafting of
documents, violation of transport rules, accepting cargoes
which are inaccurately packed, failure to observe the terms
and conditions for loading and unloading--can cause cargoes
to be damaged, sent to the wrong destination and even to get lost.
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The quickest possible delivery of cargoes in sound condition--
this is the fundamental task in the commercial operation of
maritime transport.
2. THE SUMMARY OF COMMERCIAL OPERATIONS OF MARITIME TRANSPORT
AS A SCIENTIFIC DISCIPLINE.
The theoretical principles treated by science for operating
the fleet, include problems of organizing the movement and
technical operation, of the fleet, the organization of loading
cargoes in port and commercial operations. Commercial operation,
as a scientific discipline, is thus a component of the science
of operating the fleet and is connected with the other branches
of this science.
The topic of commercial operation as a scientific discipline
is composed mainly of problems dealing with receiving and dis-
patching cargo at initial and terminal shipping points. In
addition, commercial operation also deals with problems con-
cerning the execution of loading and transferring of cargo suda
as: the distribution of cargo on a ship, observing the required
sequence of loading and unloading, the basic principles of
arranging ships in line according to stability, steadiness and
amount of the flaw of cargo, the efficiency and time of handling
cargo in ports, the standards for loading and unloading, storing
and quickest possible delivery of cargoes and other problems
of the unified transportation process.
The commercial operation of maritime transport consists
of the following fundamental components: provisions for trans-
porting goods, tariffs, and handling ships by foreign agencies.
The first Dart Includes the basic rules and regulations
defining the interrelations of maritime transport and its
clientele in fulfilling transport activities according to the
state plan for transportation and requir,ments of the national
economy of the USSR, and the interrelations of maritime transport
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and other means of transportation. The first part also deals
with problems of operational planning for transportation,
bringing goods into maritime transport, determining delivery
dates, improving the quality of transportation, etc.
The second part includes the principles and rules for
setting up and applying tariffs and the system for computing
shipping charges.
The third part includes basic Provisions for handling
ships by agencies when shipping foreign trade cargoes between
Soviet and foreign ports and between ports abroad, the system
for drawing up charters, freight regulations, rules for loading
and unloading ships in Soviet and foreign ports, customs legis-
lation, rules for the organization of carriage and forwarding
operations and for maritime insurance, etc.
Commercial operation of maritime transport includes:
1) The studying of the flow of cargo, organizing
the business of bringing goods into maritime transport and
participating in drawing up transportation plans.
2) Receiving cargoes from the consignor, organizing
storage and dispatching cargoes to the consignee.
3) Executing transport documents for shipping goods
and Passengers, and keeping accounts on transportation.
4) Achieving high quality in shipping cargoes and
speeding terms of delivery.
5) Drawing up and enforcing the observance of rules
and provisions for transporting cargel. passengers and baggage.
6) Drawing up tariff schedules for cargo shipments
and rules for levying tariffs.
7) Organizing passenger transportation and service.
8) Organizing dispatch procedure in maritime transport
for serving customers and for handling export and import cargoes
in Ports.
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171
9) Organizing through transportation of cargo by
water, and by rail and water combined.
10) The efficient use of means of transportation,
lowering transportation costs and increasing the profit ability
of maritime transport operations.
11) Organizing the agent hatling of ships in Soviet
and foreign ports.
12) The examination of claims resulting from agree-
ments covering transportation of cargo, passengers and baggage.
13) Establishing and regulating relations, according
to contract, between maritime transport, and its users and
other types of transport (general agreements, nodal (uzlovyye)
agreements, etc.).
In a socialist economy commercial operation of maritime
transport differs basically from commercial operation of mari-
time transport in capitalist countries.
The operation of Soviet maritime transportation, including
commercial operation, is based on planning.
The state plan for maritime transportation is an organic
Part of the general national economic plan. The plan should
achieve the following:
a) The fulfilment and overfulfilment of the national
economic plan through timely and efficient cargo deliveries
and through complete satisfaction of the transportation re-
quirements of the national economy.
b) The complete utilization of the carrying capacity of
all maritime transport means, taking into account the correct
distribution of the flow of cargo among the different types of
transportation.
In a capitalist economy, where competition and anarchy
of production prevail, planning in cargo transportation does
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not, and cannot exist. The entire organization of transport
operations in capitalist countries is subordinated to the
fundamental economic law of contemporary capitalism--the
securing of maximum capitalist profit.
Before the Great October Socialist Revolution, the coMmer-
cial operation ofemaritime transport did not exist as a hardon-
ious system of norms and regulations.
Under the capitalist economy cargo shipments were arranged
0
through private transactions among the shipping companies and
the consignors. The interrelations of the parties were re-
gulated by conditions stipulated by each shipping company.
The amount of shipping charges (freight) depended on market
conditions.
After the October revolution and the nationalization of
the fleet and railroads, transportation became a component of
the unified socialist economy. This required the introduction
of socialist methods of organization in transportation.
0
In 1929 a code of commercial navigation was confirmed,
and in 1930 a code for inland water transport was approved.
In the development of these regulations a number of rules and
other instructions for transportation were worked out.
During the same period a system of tariffs was compiled.
If in capitalist countries tariffs are a system for,guaranteeing
profits, then in socialist transport the tariff system is
subordinate to the general objectives for the development of
national economy. The cost of transportation is the basis of
our tariff system.
Thereafter the regulations for shipping cargo by ocean
and river transport were constantly changed and improved,
redlecting the growing demands of the national economy.
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3, MANAGEMENT OP COMMERCIAL OPERATIONS IN MARITIME TRANSPORT.
With a view to eliminate shortcomings in commercial open..
ations of maritime transport and to strengthen the campaign for
safe transportation and rehandling of cargo, an administration
of cargo and commercial operations has been set up in the central
apparatus of the Ministry of the Maritime Fleet.
The fundamental tasks of this administration are to improve
the cargo and commercial operations of the steamship companies
and ports, to bring cargoes into maritime transport, to improve
the quality of transportation, to insure the safety of cargo
and to observe that delivery dates are punctually kept. The
administration is also supposed to work out measures for se-
curing advantageous utilization of maritime transport for con-
signors in order to effect a transition from a system of com-
pulsory cargo assignments to maritime transport to a system
based on economic interest.
In the administration of cargo and commercial operations
0
there are a department of cargo operations and operational
planning and a department of conditions for transportation and
tariffs.
The basic functions of the department of cargo operations
and operational planning are to Study the flow of cargo and
conduct the campaign to organize this in a rational manner; to
develope and apply measures for inereasing the capacity of the
fleet, to keep in touch with shipping clientele and study their
complaints and wishes;and to create operational plans for
transportation (quarterly plans with monthly sub-divisions).
The basic functions of the department of conditions for
0
transportation and tariffs are?to draft rules on transporting
passengers, cargo and baggage in all forms of navigation; to
adopt regulations governing the interrelations of the organs
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of maritime transport, passengers and cargo owners and to
determine their mutual responsibilities for the efficient and
timely execution of these transportation operations; to analyze
the operations of steamship companies and ports in securing
the safety of cargo being shipped; to study the causes of
delayed and inefficient cargo deliveries and to work out measures
for eliminating these causes; to determine tariffs for cargo
shipments in all forms of transport and draft rules for levying
tariffs.
The management of commercial operations in maritime trans.
port is carried out by the administration of cargo and commercial
operations through the commercial departments of the steamship
companies.
Instructions and explanations of the administration of
cargo and commercial operations concerning matters under their
jurisdiction are obligatory for organizations in the Ministry
of the Maritime Fleet.
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pp. 21-29
CHAPTER 5. THE BASIC PRINCIPLES OF TRANSPORTATION PLANNING
AND RESPONSIBILITY FOR FULFILMENT OF THE PLAN
The entire multifaceted economic life of the Soviet Union
is being built and developed according to the state national
economy plan.
Article 11 of the Constitution of the USSR states: "The
economic life of the USSR is determined and directed by the
state plan for national economy in the interests of increasing
social wealth, steadily raising the material and cultural
level of the workers, securing the independence of the USSR
and strengthening her defense capacity."
Planning is one of the greatest advantages of the socialist
economic system. It makes possible a rational organization
of the country's productive forces, establishment of economic
communications between town and country, between districts of
production and consumption, and the harmonious operation .of
all forms of socialist transport--railroad, water, automobile
and air--in order to correctly distribute the flow of freight.
Plans for transportation are a component of the overall
plan for the national economy.
One of the most important tasks of transport is to improve
the planning of freight traffic in order to reduce in every
way long-haul railroad transportation, to eliminate inexpedient
and inefficient transportation, and to further increase the
proportion of water and motor transport in the country's freight
turnover.
The basic Principles determing the system of Planning
in transportation by maritime routes are set forth in the decree
of the Council of People's Commissars USSR of 5 May 1934 and
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the Central Committee of the All-Union Communist Party "On
Planning Transportation and Improving the Werk of Water Trans.
port;" in the decree of the Council of People's Commissars.of
14 May 1935, "The System of Formulating and Applying Monthly.
Plans for Water Transport;" and in subsequent decrees of the
Council of Ministers.
Planning of cargo shipments in maritime transport is
based on the following principles:
1) Obtaining maximum satisfaction for the needs of the
national economy in shipping cargo, and increasing the propor-
tion of inland maritime transportation as well as the foreign
trade cargo turnover of the country.
2) Reducing rates in shipping cargo through correct
utilization of the means of transportation and elimination
of irrational transport.
3) The correct combination of work in all forms of trans-
port.
The state transportation plan is a directive. The fulfil-
ment of the plan is an obligation for transport organizations,
as well as for the users of transport.
Transportation plans are divided into projected and op-
eration61 categories. Projected plans are formulated for
periods of five and ten years, or even longer; operational
plans are drawn up on a yearly and quarterly basis.
The yearly plan is made with bi-annual and quarterly sub-
divisions. In the yearly -transportation plan, on the basis of
indexes and measurements of the working fleet and on the basis
of annual shipping specifications from transport users, the
quantity of cargo is established in tons, broken down according
to types of cargo, main consignment departments and river-basins.
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The cargo turnover in tons per mile is also determined.
The quarterly plan in monthly sub-divisions makes the
yearly plan concrete.
The plan is formed according to the following nomenclature
for basic cargoes: petroleum poured directly into the tanker,
timber floated in rafts, grain, salt, coal, cement and other
mineral construction materials, lumber, firewood loaded on boats,
metals, ore' fish and cotton. Overseas transportation and inter-
sea cabotage form a separate category.
Projected plans and yearly plans with quarterly sub-di-
visions are approved by the Council of Ministers USSR; quarterly
plans with monthly sub-divisions, by the Ministry of the Mari-
time Fleet.
The basic factors in planning maritime transportation are
the establishment of the flow of cargo, affecting maritime
transportation, aid collecting shipments for maritime transport.
The flow of cargo is determined by the following:
1) Llystematic study of the economy of the rayons, engaged
In maritime transport.
2) Studying and clarifying the practicality of cargo
specifications of shipments to be made by the consignors.
3) Thoroughly linking up maritime transport operations
with the work of other forms of transport to achieve a rational
distribution of cargo among them.
The ministries, the central institutions and consignor-
departments, in planning cargo shipments of their coneerns:in
a centralized manners present their shipping specifications
ever7 quarter to the Ministry of the Maritime Fleet 40 days
before the beginning of the quarter.
These shipping specifications should be composed in ths
form shown below:
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SPECIFICATION FOR SHIPPING CARGO BY MARITIME TRANSPORT IN
BASIN
quarter 19
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In inter-port transportation carried out by the harbor
fleet, the shipping specifications are presented to the
shipping company 50 days before the quarter starts. On the
basis of calculations regarding the possibilities of meeting
the specifications of the shipping lists: the shipping company
presents the Administration of Cargo and Commercial Operations
of the Ministry of the Maritime Fleet with projected plans
for cargo shipments in inter-port transportation.
Specifications for cargo shipments via through transpor-
tations, by rail and water combined, are presented to:
a) in transferring cargoes from rail to water transport--
to the Ministry of Railroads. A copy of the shipping speci-
fication is sent to the Ministry of the Maritime Fleet.
b) in transferring cargoes from water to rail transport--
to the Ministry of the Maritime Fleet. A copy of the shipping
specification is given to the Ministry of Railroads.
Shipping specifications from transport users should be
carefully checked with regard to their practicality and con-
formity to the decrees and directives of the Party and govern-
ment, to the plans for developing individual branches of the
economy which are served by the shipping companies of the rayons,
and to properly directing the flow of cargo.
Before the quarterly transportation plan is drawn up
according to shipping lists of the consignors, important
preparatory work is carried out: Tho combination of the fleet
which will participate in shipping activities during the quarter
is determined; and calculations of the initial position of the
vessels are made.
, The proposed quarterly plan prepared by the Administration
of Cargo and Commercial Operations of the Ministry of the
Maritime Fleet is examined and more accurately defined in
inter-departmental meetings in which representatives of the
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consignor-ministries participate.
The following points are established in the quarterly
plan:
a) The volume of transportation, broken dawn into monthly
subdivisions, of all types of goods provided for by the plan
nomenclature--for each individual ministry and department from
every shipping company separately.
b) The volume of shipments via through transportation by
rail and water combined.
Fifteen days before the quarter starts, the transporta-
tion plan is submitted to the minister for consideration and
approval.
The transportation plan, approved by the minister, is
made known to the shipping companies and consignees for ex-
ecution, and is an economic responsibility.
The basic elements of the quarterly transportation plan
of the shipping companies of the Ministry of the Maritime
Fleet are the following:
1) The plan for dispatching cargo in tons, in ton-miles
and basic nomenclature.
2) Qualitative indexes and measurements of the fleet's
work.
3) The plan of cargo turnover in terms of dispatch and
arrival of ship-loads.
In the course of fulfilling the quarterly transportation
plan, it may become necessary to change the shipping plan of
Individual cargoes for certain ports. The ministry of the
Maritime Fleet has thus the right to redistribute, according
--to shipping specification of the consignor?ministries, the
volume of transportation of individual cargoes among the ports
but without changing the total volume of transportation,
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established for the quarter of a given type of cargo. Such
corrections.in the monthly plan should be made no later than
ten days before the beginning of the month.
To secure fulfilment of the moftithly transportation plan
the shipping companies and the basic consignors compile load
diagrams for delivering cargoes and providing ships.
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2, THE SYSTEM-FOR FULFILLING THE TRANSPORTATION PLAN
After receiving the approved transportation plan, the
heads of the shipping companies and ports work out with the
consignors measures for insuring the fulfiImentoof the plan--
precisely defining the conditions for producing the cargo, etc
This must be done not later than three?to five days before
?
the beginning of the month.
Consignors should give the heads of shipping companies
(and ports) specifications covering ten-day periods, for ton-
nage or for loading preparations. In accordance with the
monthly plans, the heads of shipping companies give the ports
shipping assignments, with details for each ten-day period.
The state transportation plan must be fulfilled for the
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'total volume as well as for each type of cargo.
To decrease the volume of transportation planned fo4 each
consignor is prohibited. However, with the agreement of the
hyad of the shipping company, the consignor is entitled to
substitute one cargo designated by the plan or load diagram
for another, provided that the repladement is made within the
same group of cargoes (in transportation by intra-sea cabotage)
or within the nomenglatbre of cargoes of each consignor (in ?
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transportation by inter-sea cabotage). The consignor should
notify the shipping company in good time-of a,substitute cargo,'
and should obtain permission to ship another.consignmant
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Any? changes by the consignor concerning the dispatch of
? ? ?
cargo or destination points provided by the plan are only
allowed with the permission of the shipping company. In intra-
. ?
sea cabotage, a change in?the destination point is permissible
only withiribthe boundaries of the area prescribed as the port
of deatination, on condition that the shipping specification
for alteration is received by the shipping company no later
than two days prior to the pertinent ten-day period. A change
in the destination point of cargo in intra-sea cabotage is
permitted only in exceptional cases, and only if the new
destination is situated in the direction designated by the plan.
In case a change is. made at the request of the cargo
owner in the destination point for a ship-load already r2ceived
0
for shipment or already in tralbit, a special system for cal-
culating shipping rates is put into effect, in accordance
with the rules of the tariff manuals, and a fine is levied
for reforwarding the cargo at a rate ofcten roubles per ton
of reforwardIld cargo. If the reforwarding of cargo is caused
by the shipping company, by natural phenomena or by government
? ?
order, the freight is calculatedsccording to the route ac-
tually followed and no fine is levied.
In transportation by intra-sea cabotage, the shipping
company is entitled, in the interests of better utilization
a shipping or to make up for previous lack of ship-load, to
increase the concentration of shipping when cargoes from
consignors become available. Such increases can be made,
however, only within the limits of the approved monthly plan
and at a rate of no more than 25 percent of the norm for pro-
viding cargo as indicated for the given ten-day period. Any
Increase above the stipulated quota is permitted only by
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agreement between the consignor and the shipping company.
The shipping company must notify the consignor of the
forthcoming concentration Of tonnage 48 hours before the
start of the pertinent ten-day period. The consignor must
also be informed of the day the vessel will be provided for
concentnted tonnage not later than at 14 hours prior to the
day the vessel is standing by.
If by natural phenomena or accidents an interruption is
caused in the movement of ships, the head of the shipping
company is authorized to put an embargo on cargo to be shipped
in certain directions. The head of the shipping company shall
report the official prohibition without delay to the Ministry
of the Maritime Fleet, which will determine the period of
suspension to be in effect. In all other cases a formal pro-
hibition for accepting cargo for shipment can be declared only
by order of the Ministry of the Maritime Fleet, which immed-
iately informs all interested ministries accordingly.
Regarding the suspension of traffic on regular, fast and
express cargo-passenger lines, the shipping company must put
UD notices in all ports where ships of these lines call. When
necessary, announcements should be made in the press.
The shipping company is entitled to replace a ship de-
signated inIthergebedule by another vessel, provided that 'in
consequence hereof delivery dates will not be violated and
that the ship supplied fully meets the specifications for
transporting the given cargo.
3. THE RESPONSIBILITY OF CONSIGNORS AND SHIPPING ENTERPRISES
FOR NON-FULFILMENT OF THE TRA,NSPORTATION PLAN FOR INTER-
IIORT TRANSPORTATION IN INTRA-SEA CABOTAGE.
The consignor and the shipping company bear the material
responsibility for non-fulfilment of the established monthl.y
transportation plan.
The responsibilities of the .carrier and the consignor are
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sy,
fixed by "The regulation on the responsibilities of the organs
of water transport and its users for non-fulfilment of the
state plan for transportation along inland water routes and
along ocean routes in intra-sea cabotage," approved by the
Council of Labor and Defense (STO) on 3 July 1934; by the
Code of Commercial Navigation and the pertinent articles on
general rules for transporting cargo, passengers and baggage
along sea routes'in USSR vessels.
Cases where the consignor bears the blame for non-ful-
filment of the plan include shipping not full loads, refusal
of cargo delivered for loading and shipping specifications
calling for less freight than provided for by the plan.
Cases where the shipping company is to blame for non-ful-
filment of the plan include failure to provide shipping faci-
lities for cargoes according to the plan.
For non-fulfilment of the monthly transportation plan,
the consignor and the shipping company bear the monetary
responsibility to the extent of 100 percent of all shipping
charges: The consignor who did not supply the cargo or delivered
less than was promised is responsible for the entire amount
of cargo not forwarded for transportation; the shipping company
'which did not provide shipping facilities is responsible for
the entire amount of cargo not dispatched as called for by
the plan although actually prepared for shipment by the con-
signor.
If the consignor had notified the carrier flvetdays prior
to the start of the tent7day period about the non-delivery of
the goods, then the amount of the fine is reduced by one-third.
If the consignor Produced the cargo inaccurately packed
or Marked, and if the claims of the shipping company for re-
medying these defects are not met in time to permit prompt
-
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loading, then the goods are considered as not having been
delivered.
For providing unsuitable vessels which cannot be used
for the ship-loading, the shipping company bears the same
responsibility as if no shipping had been provided at all.
The unsuitable carrying capacity of ships is then attested
by a document signed by both parties.
For tardiness in providing shipping, the carrier pays
a fine at a rate determined by the tariff.
For delaying shipping and towing facilities in loading
and unloading, or in waiting to load or discharge, the con-
signor or the consignee pays the forwarding agency a fine at
a rate determined by tariffs. The consignor also pays a fine
if the loading is done by port facilities but the delay of
the ship beyond the time stipulated for anchorage (staliynyy
vremeni) is caused by the consignor's failure to deliver his
cargo promptly to the ship. In cases where the transport
user permits systematic delay of shipping in freighting
operations beyond the established periods, the head of the
shipping company, with the permission of the Minister of the
Maritime Fleet, can impose a fine for demurrage two or three
times as high.
In the absence of a schedule for providing ships which
has been agreed upon by the shipping company and the consignor,
the fine is calculated on the basis of the total results in
fulfilling the monthly plan.. If such a schedule is available,
the fine is calculated according to each ship designated by
the plan. When the failure to provide shipping as per schedule
is made up for in the course of the month, the shipping company
is exempt from the payment of a fine at a rate of 100 percent
of shipping charges, inasmuch as the plan has been fulfilled;
but the company is still responsible for the delay in supplying
-1 -
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1.1.1/11?Ro ,Ig.?111.111
7r.
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shipping at the rate determined by the tariff with a reduction
by one-third.
If in the course of the time stipulated for anchorage
(staliynogo vremeni) the consignor does not proceed to load
the vessel provided according to the plan (load diagram) the
shipping company is entitled at the expiration of the period
designated for loading the planned cargo, to remove the vessel
and exact a fine from the consignor to the extent of 100 per-
cent of shipping charges, as in the case of failing to deliver
the cargo. This fine is even paid when, in the final result
for the month, the entire loading plan has been fulfilled by
the consignor.
The consignor is exempt from paying a fine for non-
fulfilment of the transportation plan when loading could not
be carried out because of the following conditions:
a) Phenomena of natural calamity--fire, storm, flood,
and inundation of mines and ore quarries, also damage in
manufactories causing stoppage of production for not less
than 72 hours.
b) Regulated (konventsionniy) stoppage or limitation
of cargo transport.
c) Providing shipping for the consignor above the quota
of the plan in accordance with the system for increasing the
concentration of shipping, but without giving notice in advance.
The shipping company is released from responsibility for
failure to provide shipping under the following conditions:
a) Because of phenomena of natural calamity?fire, storm
and flood.
b) Because of regulated (konventsionniy) stoppage or
limitation of cargo transport.
c) If failure to procure tonns=ge is caused by the tardy
freeing of freightage by the same consignor to whom the shipping
-
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company is obliged to provide shipping according to the plan;
or if the increased fine for demurrage or for systematic delay
of shipping in loading or unloading is exacted from the consignor.
The documents, according to which the fulfilment of the
plan is calculated and the reason for its non-fulfilment is
determined and on the basis of which fines levied against the
guilty party are computed, include the following;
a) The state plan of transportation for the month.
b) The shipping specifications presented by the consignor
requesting the service of the fleet and the load diagram for
furnishing vessels agreed upon by the parties involved.
c) The computation card (uchetneya kartocbka) for plan
fulfilment.
4E.M10.?
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gi-4efitio
PP. 40-41
11-PREPARING A VESSEL FOR LOADING AND THE RECEPTION
OF CARGO BY THE VESSEL
Article 85 of the Code of Commercial Navigation stipulates
that the shipping company is obliged in 'hood time, before
sailing to put the ship in a fit state for navigation, equip
it properly, provide a full crew and furnish provisions; at
the same time the molds, store rooms and refrigeration faci.
lities must also be put in good condition to assure the proper
taking in, preservation and transportation of cargo. Any
agreement inconsistent with these rules is invalid."
In accordance with these requirements before the voyage
begins, the captain's assistant for cargo operations will
inspect the condition of the vessel's stowing accommodation
(holds) and declare whether safe transportation of cargo can
be assured.
Having received from the shipping office ,a duplicate of
the loading, order, the warehouse manager attaches it to the
counterfoil of the loading order and with these documents
effects the handing over of cargo to the ship.
If loading takes place while the ship is moored the
goods will be received on the shore alongside of ship, and the
harbor administration (or the consignor, if he carries out
the loading) should secure the requisite amount of labor and
properly working loading machinery, and if the cargo has to
be reweighed, proper weighing mechanism must algo be provided.
In carrying out loading operations under off-shore conditions,
the cargo is received on board ship.
The items of cargo received by the ship are simultaneously
marked down by tallymen of the ship and port who compare their
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records for each parcel of the cargo covered by one bill of
lading. Notes are also collated when a new shift of tally
brigade takes over. If a discrepancy is revealed in the records
of shore and ship's tallymen,the number of items is counted
again.
The captain's assistant for loading operations compares
the number and markings of the cargo delivered by the port
with the items entered in the loading orders, marking down
all defects and discrepancies discovered. When necessary,
legal documents should be drawn up regarding the defects dis-
-covered and discrepancies noted between the cargo and the
records in the loading orders.
In arranging the handing over of all parcels of the cargo
to the ship the shipping office fills out the acknowledgment
of reception and delivery in four copies according to Form K-5
(see supplement 5), which is a schedule of all shipments delivered
by the port to the vessel, with a separate acknowledgment of
reception and delivery being made for each port of destination.
On the left side of the receipt for reception and delivery
(in the column "according to documents") the following are
listed: the numbers of loading orders and bills of lading
(way-bills), the dispatch and destination points, the description
of cargo, the number of items and weights. As the parcels of
cargo covered by bills of lading are received, the captain's
assistant signs the duplicates and counterfoils of the loading
orders and fills in the middle part of the acknowledgment for
reception and delivery (Column "Results of Loading" (Okazalosi
pri Pogrutke)).
When the loading is finished both the receiving and delivering
party sign all four copies of the acknowledgment for reception
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and delivery. One copy of the acknowledgment and the counter-
foil of the loading orders are returned to the warehouse manager;
these documents serve as confirmation that the cargo has been
handed over to the ship. Having received one copy of the ac-
knowledgment for reception and delivery and the counterfoils
of the loading orders, the warehouse manager enters the cargo
as delivered on board ship into the debit account of the ware-
house book (ambarnoy knige), indicating the date of shipment
and the name of the vessel. The adknowledgment fcr reception
and delivery and the counterfoils of loading orders are given
by the warehouse to the shipping office in order to enter the
shipment in the dispatch book for cargoes and to make up a
report. The remaining three copies of the acknoledgment for
reception and delivery together with duplyites of all loading
orders and two copies of all bills of lading are delivered to
the ship and sent with the cargo to the port of destination.
A diagram of the circulation of cargo documents in the
port of departure appears in drawing 14.
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PP. 444iik
? 13-THE RIGHT OF DISPOSAL OF CARGO
WHICH HAS BEEN HANDED OVER FOR SHIPMENT
The right to dispose of cargo after the bill of lading
(receipt for, the way-bill) has been given to the consignor--
that is, after the cargo has been receivid for shipment?is
?
retained by the consignor or consignee--depending on which of
them presents the bill of lading (receipt for tYie way-bill).
?
The consignor (or consignee) is entitled to demand that
?
the cargo received for shipment by the shipping company shall
? ?
be: ?
?
a) delayed while being forwarded; ?
b) given back before loaded on the vessel;
?
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0 returned to the point' of dispatch;
? ?
d) delivered at an intermediate point on the route
followed by the veisel;
e) handed over to some other person than the consignee
'mentioned in the billeof lading (invoice). ?
The right of disposal of cargo can be exercised only by
observing the conditions provided in "The Regulation on the
responsibility of the organs of water transport and its users
for non-fulfilment of the state transportation plan."
?
State, cooperative and public organizations can make, the ?
demands indicated through the port of dispatch as Well as
through the port of destination; private persons can do tis
I
otly.through the port of dispatch. In all cases demands should
be presented in a wrftten form, with the bill of lading (re-
ceipt for the way-bill) attached.
?
For fulfilling the above mentioned regulations concerning
cargo-owner, fees and duties, established in the tariffs,
are collected from the latter; moreover, the transporter is
?
entitled to reimbursement for all expenses incurred in executing
0
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1
? these order.
14-THECANDING OVER OF CARGO BY THE VESSEL
IN THE PORT OF DESTINATION
Upon i the ship's arrival in the port of destination, the
?
captain's assistant for loading operations delivers to the
cargo office the acknowledgment of reception and delivery,
with all the'bills of lading (invoices and way-bills) concern,
together with dupIkcates of the loading, orders.
If the address of the consignee and means for notifying
him of the arrival of goods are indicated in the bill of lading
then the cargo office will send not later than at noon of the
following day, the consignee a notice of the cargo's arrival
on Form K-15 .(Supplement 6), stipulating the time for carrying
the cargo out of the port. For sending the notification, a
special fee determined by the maritime tariffs is charged.
In those cases when the notification is not sent during the
indicated time through the fault of the port of destination,
the harbor authority forfeits the right to charge a storage
fee in the post-deadline period. However, if the port of
destination, not being able to notify the consignee, sends
?
an advice to the consignor through the port of dispatch, the
Port of destination does not lose the right eto charge a storage
fee.
,In eases where the consignee's address and the means of
0
notifying him are not indicated in the bill of lading, the
cargo ()Vice of the port is restricted only to posting a
notice about the arrival of the cargo.
After receiving from the captain's assistant the acknow-
ledgment of reception and delivery, the bills of lading (way-
bills) and duplicates of loading orders, the cargo office
?
after checking them, hands the acknowledgment of-r,ecelitiOnz;z--
?
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??????1131.
and delivery, duplicates of loading orders and bills of lading
(way-bills) to the warehouse manager for making arrangements
to receive the cargo from the ship.
The reception of cargo on shore iS carried out by long-
shoremen of the warehouse and by tallyment to whom all dupli-
cates of the loading orders are submitted in advance.
As a rule, removing cargoes ashore from the holds is
accomplished by the same seamen for stowage, who received
the cargo in the port of dispatch.
Unloading proceeds according to parcels of cargo covered
by bills of lading and unloading of each subsequent parcel
does not begin until the preceding parcel has been completely
unloaded.
At each weighing the warehouse clerk enters on a special
specification of weights, Form K-4 (supplement 7) the number
packages, the weight, the marks and numbers on items and the
type of packing of the cargo. Having received all items
belonging to a given shipment, he adds up the number of items
and weights, and compares the total with that of the ship's
tallyman and with the records in the duplicates of the loading
order. If there is no difference in weight the warehouse
clerk signs the weights specification of and confirms the
receipt on the duplicate loading order for the parcel of cargo
covered by the bill of lading. If a discrepancy is found in
the listings of the tallymentashore and onboard ship, the
captain's assistant and the warehouse manager will check the
accuracy of the count.
In all cases where Shortages are revealed or the number
of items and weights are in excess, and also when the cargo
Is damaged markings are absent, legal statements signed by
,,,????"-- 1 7
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representatives of the port and the ship should be drawn up.
When unloading is completed and all parcels of cargo
covered by bills of lading, as listed in the acknowledgment
of reception and delivery have been received, the right-hand
cart of the receipt (column "Actual Results) is filled in and
all defects of cargo and tare found while taking over, are
indicated. The acknowledgment of reception and delivery is
signed by parties receiving and delivering cargo. One
copy of the acknowledgment remains with the warehouse manager
of the port and two are returned to the captain's assistant
of the ship. One of these copies is later attached to the voyage
report and the second remains among the ship records.
Having taken care of the acknowledgment of reception and
delivery, the warehouse manager enters the cargo received
from the ship in the warehouse account book and gives the
acknowledgment of reception and delivery along with the
duplicate loading orders (invoice and way-bills) to the cargo
office of the port.
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.1,
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PP. 48-50
16-TIME PERIODS FOR STORING AND SHIPPING OUT CARGO
The general rules for transporting cargo by maritime trans-
port designate specified periods for storing goods in ports of
arrival. At the expiration of these periods the cargo is
considered unclaimed.
Starting from the first midnight after unloading, cargo
is stored for 24 hours free of charge. Thereafter storage
fees established by Tariff Manual No. 1-M, are charged to
the consignee.
To insure efficient work in the ports and the safety
of cargo, it is requisite that consignments be shipped out
of the ports in the shortest possible time so as not to block
up port territory and warehouses.
To meet these requirements, the Ministry of the Maritime
Fleet has been authorized to fix special time limits in which
the following items must be redeemed and shipped out of port:
a) Perishable goods.
b) Cargo requirIng:the setting up of special premises
for storage or the allotment of a large area of the port.
c). Cargo, the prolonged storage of which is declared
inadmissible as a fire or sanitary hazard or because of its
unwieldiness.
d) Cargo redeemed (accepted) by the consignee but not
shipped out of the port.
e) Cargo delivered at port, but not turned over for
shipment, nor put into storage.
Various time limits for storing cargo, and taking it
out of ports, depending on.the physical-chemical character-
istics of the cargo, have been, determined by the rules in,
?
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effect concerning the terms for reception and sending out
cargoes by the consignee in maritime transport. (Tariff
Manual No. 4-M, Part I).
The time for shipping out perishable goods is set at two
to ten hours; for dangerous cargo--24 to 48 hours; for other
cargoes--48 hours to. 1.5 days,
If, as a result of dampness, spontaneous combustion or
peculiarities of the cargos the goods arrived in port begin
to get dmnizsed the port must make an inspection of these goods,
with the assistance of an expert and two witnesses, and abridge
the time for shipping the goods out. An official statement on
the result's of the inspection must be drawn up.
If at the expirationof the fixed time the owner does not
thip the cargo and does not give written instructions to the
port what to do with it, the cargo may be sold in the regular
course.
Managers of enterprises and organizations are forbidden
by the leading organs to refuse receipt of goods addressed
to them. Officials guilty of refusing to,3accept cargoes which
have arrived, or delaying shipments out of ports, are subject
to disciplinary action or legal prosecution.
In case of excessive accumulation of cargo in the ports,
as well as in case of systematic -delay in redeeming and shipping
out cargo by individual clients, the heads of shipping companies
are authorized, in order to compel cargo owners to redeem and
remove cargoes as quickly as possible, to reduce the time of
chargeable and non-chargeable storage, increase storage rates,
-and permit the transfer of cargo to outside warehouses where
storage will be at the expense and risk of the cargo owner.
Au order to this effect will be carried out not sooner than 48
hours after announcement.
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pp 83=90
CHARTER 11 -- TRA1SPOR2ING CAM? IN CONTAINERS
1?Significance and Advantage of Containers
Containers should play an important role in improving the quality
of transporting cargo, pa rtic ul a rip industrial goods and foodstuff.
The use of containers has the following advantages:. ?
a. Transportation of goods from the warehouse of the consignor to
the consignee's warehouse is possible without reloading cargo in ports
a3x1 railroad stations; this simplified commercial operations in re-
ceiving and handing over cargo.
b. The complete mechanization of loading, unloading and cartage
operations are thus speeded up. Consequently, demurrage is reduced.
c. The weighing of cargo when received from the consignor and de-
livered to the consignee becomes tmnecessary and also when conveyed from
one form of transport to another. The marking of goods is also super-
fluous.
d. It lessens the need. ibr covered storage since containers can
be stored on open platforms in the ports,
e. It considerably saves packing material.
f. It assures the safety of cargo.
g. It lowers transportation costs.
Contairers are widely used on the railroads which have their own con-
tainer equipnent numbering over 130,000 containers. Theshipping of goods
in containers is also developing in 4.ver transport.
In maritime transport, the conieying of goods in containers is still
carried cut on a =vigil scale, p41marily in the Black Sea and Caspian ba-
sine. There is a big optortunity to develop container-transport of
sugar, tea, raw tea, wine, sweets, --eserved food, dry fruit, cloth,
foot-wear, crockery- , cultural objects LiulittoTarri an4 ?m&ty other com-
modities TEiliCh as a rule are provided for ski pia nt in anall parcels.
"teY,
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The development of transporting cargo in containers offers a big op-
portunity for drawing goods into maritime transport.
2 - Types of Containers
A container is defined as a mobile transport device, a receptaal. for
transporting goods without employing the usual packing. A container is a
standard reeeptacle repeatedly used which assures the complete safety of the
cargo to be transported. The deadweight capacity and the volume of con-
tainers vary, depending on the designation of the container.
Containers are divided into general and special types.
The general containers are intilaed for transporting costly goods, for
example, dress materials, foot-wear, dry e) ode, books, cultural objects
Clair tinventa.t3 and. sweets.
The special containers are for the purpose of transporting one kind of
cargo or a group of homogenous goods, for example, bricks, metal or fruit'
and vegetables.
The general containers are built and used by transport organizations
and. their clientele ; special containers are built by the cargo-owners
themselves - as a rule, by the supplies of the cargo ? and are meant to
serve only the needs of the cargo owners.
The containers are divided according to their construction, into
single-piece open and closed, folding and collapsible types.
According to the kind of material from which they are made, con-
tainers are distinguished between wooden, metal, combination and plastic
models.
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Declassified in Part - Sanitized Copy Approved for Release 2013/07/12 : CIA-RDP81-01043R002200220007-2
10.111.1111?11. MN.
?
The basic characteristics of general containers are given in Table 2.
Table 2
CONTAINER
TARE
: WEIGHT OF
: CONTAINER
:DI
moGIVAIS
f EFFECTIVE EF"--1-ria :
:DEADWEIGHT :TIVE D3MENSION OF CONTAINER
: CAPACITY tIME DI : IN
:In : CUBIC : MILIMETERS
:XI GRAMS : METERS
? LENGTH : liEIGEff
5 ION WOODEN IADDEL OF
THE AllitAVIRSET FACTORY :
1080
.
: .
.
3920 ? 9.4 ..
. .
. .
?
?
?
2700 : 23A6 : 2300
2i MN WOODEN 1951
L112,Efe MODEL
600
?
?
?
?
?
?
?
?
1900
? ?
?
. .
? 4.9 ?
? ?
? ?
? ?
? ?
?
? ?
?
?
2120 : 1325 : 2339
?
?
2i TON MAT. 1948
ISIZHT Minn
?
?
580
?
?
?
?
?
?
?
?
?
1920 4.9? a
? ?
? ?
? ?
? ?
2120 *1 1300
? 2300
?
TON-MAL 1948
mazErr MODEL
300
?
?
?
?
950
?
?
?
?
2.0
?
?
?
?
?
?
? ?
? ?
?
? ?
1055 1286 2075
1) L - I - I - ZR - T LENINGRAD INSTITUT/1 FOR RAIL
TRANSPORT ENGINEERS
The container equipuent of the USSR railroads consists mainly of general
wooden 2 tox containers of the 1940-41 LIIZBT typa. At present, 2 tan metal
containers of the 1948 type are being introduced. These are marked by lower
construction costs and greater durability. A metal container is superior to
a wooden one in assuring the safety of cargo sdaile in transit or when stored
in port.
In order to assure the safety of cargo, general containers of: all typos
are, built closed, with tightly shutting doors. The greater part of general
railroad containers have slanting tops to drain off atmospheric precipita-
tion. For lifting the containers, there are on the i5op four rings attached
to two metal bands, which encircle the containers *vertically.: The slanting
top and the catching rings projecting above the lid are unhandy for loading
containers in two tiers. So the wooden and natal containers now being built
?
.www.M.A?
re:
S.
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r4f1
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4
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,41?1?1104110
have horizontal tops, and the rings are placed in? special sockets. The
wa3.113 of these containers have been reenforeed so they can be stacked in.
two tiers.
For river shipping companies 2.i? ton general wooden containers are
being built according to the standard Cow 6576-53 of 26 May 1953.
Every general tvntainer should be narked as follows: the number of
the container; the tare weight of the container; the maximum load. (gross
weight); the volume; the name of the owner; the year, the container was.
built; and date of the last capital repairs. These markings should be
stenciled on the walls of the container.
The number of special container types, as distinguidred front general
containers, is rather great. For enunple, there are more than 15 types'
of special containers palely for transporttre bricks.
The features of a special container are determined by the physical-
chemical properties of tin cargo; the equirment and power of machinery
in the ports for loading, unloading and transferring cargo; the form,
the deadweight capacity and clearanoe-gauges of the means of transport
by -which the shipment of containers will lx. carried out as well as the
method of loading and unloading containers and other circumstances.
3 - Rules for Transporting Cargo in General Containers
The shipping of cargo in general containers is carried out. between
sea and river ports and wharves and railroad stations, open .for each
shipment. Lists of such pirtst wharves and stations are published in
the edition of transport rules and tariffs' in maritime, river and rail-
road transport.
The dispatch of cargo in containers in through transportation* by ?
rail and water combined, with the assistance of maritime shipping-corn-
. ?
panies is mainly carried out along the route of Moscow-GOrtkiy-liuybyshev-
Stalingrad-A.strakhan and further to Baku and Krasnovodsk.; and along the -
route of Elev-Dnepropoetrovsk-Eherson-Ode
,
?
*.Maims.
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CD
For transport operations with cargo containers involving through
transportation by water eight sea porta are open: Odessa, Nikolayev,
Thereon, Rostov-on-Don, Baku, Makhachkala, Kraenovodek and Novorosiysk.
The transportation of containers along sea routes in other directions
?
can only be effected by agreement between the Ministires o Rail Trans-
port, the River Fleet and the Maritime Fleet.
The transport of cargo in seneral ecotainers is carried out accord-
ing to common or vecial rules. If the cargo is shipped by maritime
companies with participation of the railroads, then the rules for trans-
porting cargo in general containers in through tra4sport, by rail and
?
water combined, are applied. If cargo is transported by maritike companies
with the assistance of river shipping companies, then the rules for through
transport by water are applicable. For the transport of cargo in contain-
ers only along sea routes, the general rules are put into practiee.
Cargoes in general containers are dispatched according to the trans-
portation plans which are compiled and approved by the Ministry of the
Maritime Fleet on the basis of shipping specifications received from the
consignors. When transporting cargo in containers in througa transport,
by rail and water combined, plans are adjusted with the Ministries of Rail
Transport and the River Fleet. Over and above the plan, goods can be transport-
ed by preliminary agreement between the organs of maritime transport and the
organs of the Ministries of Rail Transport and River Fleet.
,Sea ports, raitroad stations, river ports and wharves must accept from ?
each other, without obstruction, loaded containers at transfer points,.
Within the limits of the transfer quota set by the 'plan for transporting
goods in containers.
Cargoes in containers are received for shipsent. according to the
weight declared by the consignor in delivering the cargo for shipment
and his attached lead !meals. The leaden seals should tarry the name' of the
consignor, the name of the dispatch point, and the numbers and control
check.
??????
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.?1????=0
?-?,fe\.
The con.signor puts a tally on the door, a wooden tablet, handle of
each container on which are marked the points of dispatch and destination
and the names of the consignor and. consignee.
If the cargo is being shipped via an inter-port route the consignor
can make out one bill of lading or way bill for all containers addressed
to the same consignee. In dispatching cargo via through transport, by
rail and water combined, or in through transport by water, way-bills are
made out for each container.
Inside each container with a cargo consisting of piece-goods the con-
signor encleses afl invoice; in shipping household goods in a container, the
consignor must make a specification of articles carried in the container,
with their value.
The cargo in containers is so arranged that pressure against the walls
of the container is evenly distributed so that in rough weather the cargo
does not shift arotmd inside the container and does net press against the
container doors, which should open and close freely.
The shipment of explosive, inflammable, ivisoneue and corrosive cargo
In containers is prohibited. It is also forbidden to ship foul eraelling
and dirty cargoes in general containers for common use, which belong to the
railroads or shipping companies; likewise it is prohibited to ship a cargo
which would require a disinfection of the containers. It is not permissible
to siaip in general containers heavy-weight goods which cannot be unloaded with-
out the aid of mechanical. hoists. Liquid goods in glass are also not accepted
for shipment in containers via combined rail and water transport in which mari-
time transport takes part.
The shipping companies are not responsible for damages of cargo in con-
tainers resulting from defects of the goods themselves, inaccurate packing
or poor packing up of the container.
?
-
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0111Amo. rrem?????..
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1i+
The consignor is held responsible for any incorrect declaration made
in the bill of lading which may cause a reduction in shipping eharges,
for loading a container beyond its carrying capacity as well as for in-
adequately loading a container.
The discharge of o)nts.iners from rail or river to maritime transport,
or vie-versa, is carried out at transfer points according to transfer do-
cuments. During the transfer containers lave to pass outward inspection;
the container numbers, inscriptions on. the tally and the impressions on
the leaden seals are checked with the data given in the invoice. Contain-
ers are transferred. without being reweighed.
If in transfer operations, a defect is found in a container, the
leaden seals damaged or missing, or a discrepancy appears between the im-
print on a Seal and the data specified in the bill of lading then the
receiving party must ask the discharging party to have a joint check made
of the cargo on the basis of the invoice enclosed in the container by the
consignor. In the absence of an invoice, the actual cargo in the contain-
er is checked. A commercial document Tkommercheskiy akti. is drawn up
with a report on the opening of the container and the result of the check-
ing of goods. After the check-up the cargo should be packed in a sound
container, on which the leaden seal of the party accepting the cargo for
further stiiiment is attached.
In the event Of serious damage of the container incurred enroute, it
is unloaded. A list is made of the cargo removed, and a canmereial,docu-
ment 5.47 is drafted. If it is not possible to replace the container,
the cargo is weighed and made up in another form of packing and sent on
as appointed, with the list and commercial document attached to the ship-
ping document is.
Containers which are defective in commercial and 'technical respects
are not accepted for shipment. Technical defects include a defective
body of container, missing rings, damaged metal bands and bent parts.
471.-
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,
?
Commercial defects include a defective lock, a door which does not shut
tight or is fastened with nails, traces of dampness and broken seals.
Delivery of containers to and from ports is earried out by motor
'vehicles of the transport and forwarding offices or cargo-owners; this
job is also taken care of by railroad flat-trucks and half-trucks
olletformypoluvagon.g. Loading atd unloading containers at transfer
points is accomplished by the hoisting machinery-and equipment of the
sea-ports.
eight 2i ton cargo containers make up a load for a 20-ton railroad
flat-truck. According to the rules in effect for railroads, a flat-truck
should be loaded at the dispatch point with containers having as destina-
tion one or several stations along the same route. The eight containers
when put togither are called a set. Transfer ports receive and transfer
containers in sets; transfer documents are made out by the ports and sta-
tions for every individual set. Maritime ports should also load containers
on a vessel in sets so that in the port of destination each set can be
loaded directly on a flat-truck, without sorting the containers in the
warehouses of the port.
On routes where containers are transported in 'large quantities, the
Ministries of Rail Transport and the MariUme nest permit containers to
be shipped individually, without being collected in sets.
When storing containers ill ports they should be put on. andoth plat-
forms especially set aside for the, purpose with containers placeddirectly
door to door se as to eliminate the possibility of access to the doors
and tearing off the Deals and tally marks. If the platform is not covered
with asphalt and. dces not have an inclined surface to drain off atmospheric
precipitation., containers should be placed on planking to prevent damage
of the cargo by moisture. On a ship, containers are placed facing door to
door.
In placing containers in. two tiers, it is necessary to take protective
manures agEdnet damaging them. (as r4infarcement, keeping theca apart, etc.).
?
,am
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?????=120
41,74,A
q
:454;
:44
For the same constderations and in order to insure safety in loading
and tmloading containers, it is forbidden to hoist them with a crane not
tackling all fbur rings; it is also forbidden to lift simultaneously con-
tainers with one crane without using cross-'wise hoisting gear. To avoid
damaging the cargo inside the container it is forbidden to swing contain-
ers so that they tilt (4... no razreshayetsya raskachivatt konteynery
nawesy) or to put them on an inclining ground.
At dispatch, destination and transfer points, the ports make an-
nually local contracts with the transport and forwarding offices of the
railroads.
These Agreements determine:
a. the time and place for receiving and delivering containers.
b. the 1nd1vidua3.3 authorized by the parties concerned to take care
of receiving and handing over of containers,
c. the means of conveying and shipping containers (by motor trans-
port, freight cars) and the manner for executing the documents concern-
ing the transfer of containers.
d. the number of motor vehicles or freigtrt cars with container-
cargo to be hanaled at the time by a port; and. tine :limits for loading
and. unloading.
e. the system of sending preliminary advice of the arrival of ves-
sels and freight cars carrying containers, and for providing ships for
loading and starting the delivery of containers to the port.
f. the system of formulating schedules for providing ships for
loading containers and for delivering containers to port, with instruc-
tions as to the time for ships to be in readiness, the number of con-
tainers these daips should. receive, and the ports of destimition.
g. the system for computing shipping rates and other charges.
The responsibilities of' the maritime shipping companies for delivery
dates and the safety of the cargo shipped in containers are determined
by the rules in effect for maritime transport. '
-
..!WIImo ??????1411
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?
'
? rfr..t1'177:
The metritime chipping companies should effect delivery in short
tarots not allowing containers to be detained in ports while waiting to
be loaded into ships.
/n order to speed the rotation of general railrpad, containers, a
rrynten tan been established according to which for containers delayed in
Ilarittase transport beyond the fixed dat?e, the shipping company pays the
railroads a fins at the rate of 3 rubles per 24 hours delay, apart. from
the shipping company being responsible to the cargo-owner for delay in de-
livering the catigo.
?
?
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11.?????? *.mmiwa,
4' pp 94-100
L
CRAFTER 14 ?TRANSPORTING CARGO VIA THROUGH TRANSPORT
BY RAIL AND WATER COMBINED AND VIA THROUGH TRANSPORT
BY WATER
1?Sigaificane of Though Transport by Water and Rail
Combined and Through Transport by Water
Among the advantages of a socialist transport system are the com-
plete utilization of all forms' of transport in shipping the freight of
the national economy and the most rational distribution of fieight traf-
fic by mans of planning transportation.
Much use is made in our country of through transportation by rail
and water combined (i.e. with the participation of railroads and the
maritime or river shipping companies) and through transport by water
(viz. with the participation of maritime -and river shipping companies).
Such transportation provides great advantages for the transport system
and its users.
The remunerative advantages of through transport by rail and water
combined are shown in Table 3.
The use of sea routes in combined transport considerably reduces
the freight for goods which otherwise must travel by rail in certain
dilections. (Table 4).
The regular lines available in maritime transport make a more rapid
delivery of freight possible by combined transport along certain routes
as seen from Table 5.
An outstanding feature of through transport by rail and water, and
direct water transport is in fact that shipnents are effected with a
single, direct document (bill of lading) made ?At at the dispatch point
fcr the entire route (rail and water, or sea and river) to its destina-
tion. Furthermore, transhipment enroute from one form of transport to
another is accomplished without the Participation of cargo owners. Such
a system. eliminates the necessity for cargo owners to have their own
representatives and temporary storage facilities at transit points
where freight is passed from one form of transport to another.
elomm. .oloimg?Llo
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.4
Table 3
?
?
?
? ?
?
NAME
OF
CARGO
?
?
MUTE
:
: TARIFFS PER TON IN RUBIES AND KOPECKS
: Br DIRECT : BY COMBINED RAIL
: AIR TRANSPORT : AND WATER TRANSPORT
: ?
METAL
?
?
;ST. SA.R'rANA?
:TBILIZI
?
?
?
70.50
: 52.20 (Through
: ZHDANOV and POTI)
: SAVINGS MADE
BY COMBINED
: TRANSPORT, IN
: RUBLES AND
::KOPECKS
?
: 18.30
?
? ?
? COTTON
ASHRIIABAD ?
:KIEV
?
?
?
?
?
?
?
?
?
. ?
: SUGAR : KIEV?
,: : TBILISI
? ?
. ? ?
346.90 : 3.47.70 (Through : 199.20
;KRA.SNOIODSI AND .
:MAKHACHICALA
. :
: 205.00 :173.90 ( Through
:KHERSON AND POTI)
?
?
?
?
31.10
ROUTE
?
?
?
?
?
: TRANSFER POINTS
?
?
?
?
?
Table 4
:SHIPPING DISTANCE BY RAIL :SHORTMED FREIGHT
:IN KILOMREERS :BY RAIL IN
:BY CONTI:Wt. :WITH THE PARTIt PERCEIIT
:OW Ran :CIPATION OF :
:TRANSPORT :THE MARITME :
:FLEET
?
?
: ODESSA
TBILISI
ODESSA
: KRASNOMR
?
: TBILISI?
: ASHKHABAD
?
: BAKU
: ASHKHABAD
: BATUMI
?
?
?
?
2220
?
?
345
?
?
?
?
?
?
NOVOIDSSITSK
; 1336
?
?
?
135
?
?
?
BAKV,
KRASNOVODSK
: 5690
;
3.095
?
?
: KRASNONODSK
: 53.75
?
552
?
?
85
90
81
89
ROUTE
?
?
:TDAE OF : DELIVERY WITH THE PAR?
: I DELIVERY : TICIPATION OF MARITME
:TRANSFER POINTS: BY RAIL, : TRANSPORT, IN DAYS
: In - :BY :BY : TOTAL
: MAYS :RAIL :SEA : DELIVERY
?
?
?
Tab] e 5
: REDUCTION OF
:
DELIVERY TIME
::WITH PAHTIOI
PATION OF MARI?
: TELE TRANSPORT
: IN DAYS
:ODESSA
:TBILISI
S.
?
BATIMI
:;
:ODESSA
:KRASNODAR
?
:TBILISI? : BAKU,
:ASEK8BAD : IMASNOVODSK :
BAKV--
; ASHXHABAD
?
?
?
?
?
?
?
?
?
11.0 ;3.5 :3.3 : 6.8
?
?
?
?
?
?
?
?
:NOVOROSSITSK :
? ?
8.0 : 2.5 : 2.5 : 5.0
?
?
?
?
?
?
?
?
?
?
4,2
3.0
? ?
?
?
? ?
; KRA.SNOVODSK :
25.0 7.5 :1.0 : 8.5
?
1.6,5
23.0 : 4.5 LO : 5.5
. ?
17.5
-
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t.
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lIP
In order to encourage shipments via through transport by coo-
bined means, the government has instituted reductions in the tariffs
for such shipments (in rail and maritime transport tariffs are re-
duced by 30 percent; in river transport, tariff reductions are divi-
ded into two classes, averaging also 30 percent.
2-General Rules for Shipping Freight via Through
Transport by Rail and Water Combined
In shipping freight via through transport by rail and water com-
bined, the transport organi0 and transport liners are governed by the
following basic laws:
The Code for railroads of the USSR (Section 5--"Through Transport
with the Participation of Other Forms of Transport") approved by the
Council of Ministers USSR, 8 December 1954;
"The rules for conveying freight via through transport by rail and
water combined," approved by the Ministry of Communications, the Ministry
of the Maritime Fleet and the Ministry of the River Fleet.
"The rules for conveying freight by rail and water combined through
the port of Nikolayevwk-on-Anur by ma to the Island of Ellchalin," pub-
lished by the National Commisariat of the Maritime Fleet.
In all cases not provided for by the indicated rules, the transport
organs and transport users follow the regulations of the Co for Railroads
and the instructions issued in the course of the development of the code
(when conveying freight by rail); by the Code for Commercial Maritime
Navigation and the regulations issued in the course of its development
(when freight is conveyed by sea); and by the Code of Inland Water
Transport and the regulations issued in the course of the code's develop-
ment (when freight is shipped by inland water routes).
Included in the through transport by rail and water combined are all
railroad stations open for cargo operations, and maritime and river ports
and wharves, mentioned in special sdhedules listing ports and wharves
which carry out cargo operations in connection with through transport by
g_.3/
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.11???????? ???????131
rail and water combined. Lists of these ports and information about
their operative capacity are published in "The directory of rules for
transportation and tariffs in maritime transport."
Transit points for conveying freight from rail to water transport
are determined by the maritime shipping companies by agreement with
the corresponding railroads.
Liquid goods, poured directly into transport vehicles and carried
In special rolling stock, amd timber floated in rafts along water roUtes
are not accepted for shipment via through transport by rail and water
combined.
Packed goods produced for shipment via through transport by rail
and water combined, should be firm, standard packing which mill assure
the safety and intactness of goods when forwarded and shipped.
For freight going to the rayons of the Far East and extreme north,
more exacting requirenents for the quality of packing have been estab-
lished. These requirements are set forth in the directory of "temporary
technical requiremeats for care and packing in unloading freight in the
Arctic and the rayons of the extreme North end Far East."
3-Planning Transportation of Freight in Through
Transport by Rail and Water Combined
The basis for formulating the plan of transporting freight in
through Transport by rail and water combined are the preliminary shipping
specifications from transport users. These advices are submitted to:
a) The Ministry of Communications and (copies) to the Ministry of
the Maritime Fleet *hen freight is dispatched from railroad stations and
subsequently passing to maritime transport.
b) The Ministry of the Maritime Fleet and (copies) to the Ministry
of Rail Transport when freight is dispatched from maritime ports with sub-
sequent transfer to railroads.
-
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...?????
7;:ts
;t4
AZ,
Transport users in submitting their preliminary shipping speci-
fications and the transport organs in formulating their transport plans
must take into account the established list of goods which are su.b.Spct
to ccxxbined transport by rails: and water.
Consigners in their transport advices must list separately the
following goods: perishables, poultY, heavy-weight goods (items weigh-
ing more than a ton), long-measuring and cumbersome goods (items more
than three meters long, over 2.1 meters high ?and more than 2.6 meters
wide ) light-weight goods ( furniture, empty packing-cases, tin ware,
goods whIch are a fire hazard or which are piled or strewn about. If
these requirements are not met, then only ordinary goods, with no spe-
cial transportation requirements, are considered as having been listed.
and are included in the plan.
The question of the possibility of transporting the listed goods
is decided by examining the preliminary specifications of transport users,
Once the goods are included in the plan, any further questioli of accepting
them for shipment does not require a special agreement with the railroads
and. shipping companies.
The Ministry of the Maritime Fleet and the Ministry of Commuhicat ions
jointly approve and notify the shipping companies and railroads of the trans-
port plan for through transport by rail and water combined.
The responsibility of the parties concerned for fulfilling the plan is
determined for each month.
The Ministry of Communications and the Ministry of the Maritime Fleet
can shift from rail to water transport those geode, when conveyance by di-
rect rail transport would be irrational. The departments concerned are
notified, of such arrangements.
The agreed upon norms for passing freight from one form of transport
to another, conveyed by direct transport by rail and water combined, ,are a
component of the quarterly transport plan approved by the Miniatries of '
Communications and. the Maritime Fleet.
- 0-
?
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On the basis of the norms approved by the ministries for providing freight
cars, the shipping companies inform the railroads not later than on the 20th
of each month of the shipping plan worked out for freight to be conveyed by
combined through transport, first by water and then by rail; the shipping com-
panies must indicate the transfer points, the route to destination, and the
type of cargo. The railroads in tura? submit the shipping companies - again
not later than on the 20th ef the month - a similar shipping plan for goods
via combined through transport, first by rail and then by water.
Similtaneously with the general plan, a plan for passing freight from
water to rail, and from rail to water, should be worked out for each trans-
fer point indicatiAsthe quality of freight in car loads and in tons.
The plan is compiled according to the form shown below.
4-Time Periods for starting and completing the Reception
of Freight for Shipments via Through Transport by Rail
and Water Combined
Notification about the time periods for starting and completing the re-
ception of freight by the shipping companies from the railroads is given to
the railroads no later than twenty days before these time periods start;
these dates are also published in the directory of rules for transportation
and tariffs in maritime, river and rail traneport.
Freight which has arrived at ports for transfer to water transport after
termination of the reception period is accepted by the ports only if it was
accepted by the railroads at the dispatch points before publication of the dates
for terminating reception of freight at transfer points. Such freight can be
re-forwarded by agreement between the freight-owner and the railroad.
After the navigation is closed, all freight which is passing in transit
by rail and water combined and 'which has arrived at transfer points for
further dhipmert by rail, should be shipped out according to official' ad-
vice of the shipping companies.
Freight, held up by cloned navigation at a point connected with the
railroad* Should be delivered by rail by the shortest possible route, with
?
Wiraimmra
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grams. ton????01,
J
payment being made for the actual distance travelled. The charge for
the part of the sea-trip is also made for the distance actually travelled.
If the point, at which the closed down navigation has held up the freight,
is not connected with a railroad, the freight is held back at this point
until navigation is reopened. Within five days after a ship has come to
a standstill, the shipping company must sand notifications concerning all
freight stuck for the winter to the dispatch and destination points in
order to inform the consignor and the consignee.
If freight had been received for Shipment after the expiration of
tha compulsory period for reception, the owner of goods must within ten
days either take possession of the freight or sign a contract for storage.
If freight had been accepted for shipment, or been delivered to the port
for transit by sea, before temaination of reception, the shipping company
must more the freight stuck for the winter free of charge until naviga-
tion reopens.
In formulating the annual plan, the quantity and designation of
freight to be shipped in advance to transit points for maritime trans-
port are particulRrly specified for the purpose of assuring maximum
loading of the vessels making the first voyage.
For this reason, shipping companies suffering an interruption in
navigation publish annually, not later than 1 Xanuary, the following in-
formation in "the Directory of rules for transportation and tariffs. in
maritime tramsporte and telegraph it to tie railroads:
a) a schedule of ports which accept freight for storage before na-
vigation has started and stations where freight is transferred to shipping
companies;
b) the date when the reception of freight for storage starts;
c) the type of cargo". the quantity, the means of transporting it
(packed or loose; etc.) and the conditions of storage.
The railroads accept freight for delivery to ports for advance stor-
age within the limits of the plan. The consignor should mark on the way-
?????????
rti
-4
?
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ft.
,ssonsms)
bill that the goods are intended far stdrage at the transfer point
before navigation reopens: /freight arrived. at ports. for advance
storage is passed over by the railroads and accepted by the ports
according to general Tulsa bat it is stored in warehouses or on
board ships of the shipping company at reduced rates.
?
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0
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0
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(I)
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-
PLAN
FOR TRANSFERRING FREIGHT BY COMBINED RAIL AND WATER TRANSPORT
FOR
TRANSIT POINT
s
. PORT s STATION
TYPE
OF
'CARGO
1 QUANTITY OF CARGO
*APPROVED FOR TRANSIT
t IN TONS
4 mdk RAIL
: TO WATER
:Taal :ffaay
MONTH, 19S _L.
MA11MtJ1'1 NUMBER OF SHIPS :
t AND FREIGHT CARS AS? :
s SIGNED FOR TRANSIT : DESTINATION
t ACCORDING TO THE PLAN
t 1
FROM
WATER
TO
RAIL
flini, OF COM
MUNICATIONS
:(DAILY AVER*
t AGE NUMBER
t OF CARS)
MINISTRY
:OF THE :
MAR.FLEET
:SHIPPING t
:COMPANIES :
:TONNAGE -:
?
RAIL z
t ROAD s CCMPANY
PORT
a) From Rail to Water
TOTAL FRCM RAIL TO. WATER ?
b) FROM WATER TO RAIL
TOTAL FROM WATER TO RAIL
. r ?-? 40 14 .;-.4 ? t'ff2 ilte 44 ? ? Y.ci: VA I
?
"="i4W6MIA*,060,51,*_'
.Z-LOOOZZOOZZOnl?1701-0-1-8dCW-V10 /LO/O 3S3I3I -104 P8AaiddV /Woo Pez!PeS -1-led LI! PeWsseloaCI
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,???????13,
?
pp 105'407
7.41UTUAL RESPONSIBILITY OF TIE SHIPPING COMPANIES* RAILROADS
AND CLIMELE FOR SHIPIONTS VIA THROUGH TRANspore BY RAIL
AND WATER COMBINED
The reailroads have to fushish the transit ports with loaded.
freight cars forwiloading or with empty' cars for loading within the
limits of the average daily norm, xeckored according to the monthly
transportation plan.
The maritime shipping companies (ports) and the railroads have
the right to hasten the forwarding of the freight furnished or the
number of cars to be provided -up to trice' the daily average norm set
by the plan. A concentration on a large scale lasting for more than
two days in succession, is permitted only by special agreement between
the parties concerned. Preliminary notification about such a forth-
coming increase is made as far in advance as is established by a joint
agreement Azlovyin soglashenlyemi.
For non-fulfilment of the goverment-approved plan for maritime
shipments in through transport by rail and water combined, the shipping
companies, the railroads and transport users are held responsible to the
following extent:
a) For non-fulfilment in sending out freight by sea with subsequent
transfer to the railroad, the transport user and the shipping company
are held responsible to the same extent as in non-fulfilmPnt of the plan
for inter-port shipmants--that is, they pay,s, 100 percent of the shipping
charges forlt the maritime part of the journey.
b) For non-fulfilment in sending out freight by rail with subsequent
transfer to' marttime vessels, the transport user is held responsible
to the same extent as in non-fulfilment of the plan for through rail
shipmeirts--that is, he pays 50 to 100 rubles per freight car, depending
on the type of ear and the deadweight capacity.
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For non-fulfilment of the plan for transferring freight from one
form of transport to another, the shipping company (ports) and the
railroads are held,mutually responsible according to the following
rate:
a) For failure to furnish freight during the month against the
monthly norm of the plan, the guilty party pays a fine at the rate of
25 rubles for each car-load or one ruble, 50 kopecks for each ton of
freight;
b) For failure to provide empty cars for loading according to the
port's daily cc dere within the limits of the plants daily average norm,
or the norm agreed upon for a certain day, the railroad pays the port a
fine at the rate of 25 rubles for each regular, two axle car and 50 rubles
for each special car which was not provided.
a) For failure to load cars which have been provided, or for refusing
to accept cars in accordance with the increased transfer norm agreed upon
for a certain day, the maritime ports pay the railroads a fine at the same
rates listed under Point "b".
For delaying cars in loading or unloading beyond the established
periods, the port pays the railroad a fine at the rate of two rubles for
everyhour of delay.
The authorities of transit ports and stations keep accounts of trans-
actions for fulfilment of the monthly transfer plan on index cards which
are kept separately for transferring freight from water to rail and from
Thu l to water. The index cards are filled in daily in. two copies and are
signed jointly by the harbor-master and station-master. One copy is kept
in the port, the other in the station.
Demurrage for cars is noted in the reports on providing and removing
care.
0.110mmo
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Or,
?
For tardiness in delivering freight via through transport by rail and
water combined, the shipping company and the railroads* guilty of the de-
lay, bear the responsibility to the extent determined by the Code of Mercan-
tile Navigation, the Code of Inland Water Transport and the Code of the
Railroads.
The time allowed for delivery is determined. in conformity with the
rules set for each form of transport.
The shipping companies are not responsible for delivery dates of
freight, received for shipment by water transport, or arrived at the tTans-
it point after termination of the obligatory period for receiving freight.
8-TRANSPORTATION OF CARGO IN THROUGH TRANSIT BY WATER
Shipping cargo in through transport (that is with the participation
of maritime and river shipping companies) is carried out according to a plan-
ned system. Transportation 'clans in transit by water are drawn up on the
basis of orders received from the consigners and are approved by the Minis-
tries of the Maritime Fleet and the River Fleet,
Al]. ports, wharves, transport and forwarding agencies open for carry-
ing out cargo operations take part in through transport by water.
Shipping cargo in transit? by water is carried out according to "The
rules for shipping cargo in. through transport by the maritime and river
shipping companies of the USSR." In cases not covered by these "raise,
the shipping companies and their clientele are governed by the Code of
Mercantile Navigation and regulations isisued during the gradual develop-
ment of the code when the cargo is proceeding by sea; and by the Code of
Inland Water Transpprt and the regulations i aimed in the course of the
code's developatent when the cargo is conveyed by inland water routes.
In providing cargo for shipment in transit by water the consigner
draws up an inAoice for through transport. This invoice accompanies the
cargo to its destination point.
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4
The points for trans-slapping cargo from sea to river transport,
and vice-versa are published in the directory of rules for trans-
portation and 'tariffs in maritime and river transport. The periods
for starting reception of cargo when navigation reopens and for
terminating receipt of goods when navigation is closing are cited
in the sane sources.
The system for transferring cargo at transit points are de-
termined by joint agreements Ktzlovyye soglasheniy5t1 between the
maritime and river shipping companies.
As a rule, the transfer of cargo at transit points is carxi ed
out from ship -to ship. If the receiving party does not provide
shipping facilities promptly according to the schedule agreed upon
and refuses to take the cargo in storage, then the delivering party
has the light to unload the cargo in their ovm warehouses, and
charge the receiving party for cost of storage. Moreover, the re-
ceiving party pays the deliverer a fine for demurrage of the vessels.
The fine is based on the cost determiged by the plan for maintaining
a ship lying at anchor. The delivering party pays a fine, according
to the same rates, to the receiver when demurrage of vessels pro-
vided according to schedule is caused by the late arrival of the
ships carrying the transit cargo.
For non-fulfilment of the approved plan for transferring cargo
from maritime to river transport, and. vice-versa, the maritime and.
river shipping companies pay a fine on reciprocal terms at the rate
of two rubles per ton for the entire quantity of cargo not 'provided
In accortiance with the monthly plan.
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? ? ? ? ? ? I GI
pp 107-108
CILUTER 15. DELIVERY PERIODS OF CAIIGO
1?Determining the Average Speed for Delivering Cargo
One of the meat important indexes in the work of maritime transport
is the Epeed of delivering cargoes. To increase this speed is of enorm-
ous importance to the whole natiom.1 economy, as it accelerates the
goods turnover and increases the number of runs made by the transport means
used for conveying cargo. Thus one of the fundamental tasks confronting
the workers in maritime transport is the campaign. for reducing the time
of delivery.
The delivery period represents the time necessary for effecting
the ship:tent of cargo from the point of dispatch to the point of destina-
tion. This includes the time meded for loading and unloading operations
and the time required for executing cargo documents and handling various
auxiliary jobs.
Delivery time depends on two factors;
1) On the time the cargo is enrotxtet viz. on 2 moveraent (which, in
turn, depends on the mechanical speed of the vessel carrying the cargo,
and the distance);
2) On the time the vessel remains moored in ports for care:, opera-
tions, i.e. T STAND which includes operations with receiving and hand-
ing over the cargo, dispatching the necessary formalities, as well as the
time lost in waiting for ships to depart.
Thus the general foxmula for the time spent in delivering cargo
In maritime transport i.e. T, is expressed as follows:
T = t Movement+ t STAND
where t STAND t. LOAD t UNLOAD t bi.LePLaM:T
By replacing t MU= and. t STAND with symbols showing hwat
t MOW:UM and t STAND actually mean., we get:
T-_--
R daily AT cGg t Xpp-
2
The letters denote:
D shipping distance;
?
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.01????????
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R DAILY AV. I': the rate of speed (in miles per day);
Cg carrying capacity of the eessel;
C the coefficient of utilization of carrying capacity;
N the daily norm for cargo operations.
Standing time t STAND, is taken with the coefficient 2--i.e. both
loading and unloading are te.lon into account.
fith this formula the commercial rate of speed for delivering cargo
il
can be determined. In a simple case of shipment between two points,
this can be determined by the following fonaula:
r--- ?7
R comm. -- D -- D
-1 2 . cag el- t SUPPLEMEW i
R Daily Av N
--/ ,;-
ff..!
K
CL....--....-
For example, if we calculate:
D 720 miles, R Daily AT 240 miles, cOg e- 3000 tons,
N 1000 tons, t SUpPLE;1272 - 0.5. days, we can- determine the commercial
rate of speed by the following rule:
R came. e- 720 (34 6 41) 720 e- 72 miles per day.
10
In so far as the commercial rate, as eleaun above, is directly de-
pendent on a series of factors (mechanical speed and carrying capacity
of the vessel, daily norms for cargo operations, the energy with which
supplementary operations are carried out, the distance of the shipment,
and the coefficient for removal of cargo) it is natural that, in ship-
ping various goods along different routes on ships with different
speeds and carrying capacities, the commercial rate (and consequently,
the actual length of time fbr delivering cargo) varies. It is evident
that for practical purposes (in particular, for establishing fixed
periods for delivering cargo) the de-tenni-132g of the actual. commercial
rate in every case would present great difficulties. Thus in finding
out fixed periods for the delivery of cargo, the average rate of ship-
ping speed of a shipping company or of a specified route) is assumed.
??????????
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?
Knowing the average commercial rate and the average length of
.1
carp remains in port, t standtthe actual length of time for de?
?,.
f .) 'tiering cargo can be determined by using the following formula:
.f.'
t T ? - D + t
,I.
R COM. stand.
li
4
'1
1
74'
kt4 I
.&
1
1--
I
,r-
5.-
t.
to
Co:
-58
_ 1.
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111311????? ?11M....31
pp 113-124
CHAPLER 17-- Loading and Unloading Operations
1 - Organization of Loading Operations
Operations in loading and unloading vessels and stowing
cargo in holds and on docks aro carried out, as a rub, In
seaports of the Ministry of the Maritine Fleet with the means
and resources of the ports.
If this part in not equipped with a loading and unloading
contrivance of its own, the cargo owners carry out loading and
unloading of vessols with their own facilities, observing the
standards establidhod by the Ministry of the naritime Fleet.
Ships in departmental ports, and at wharves belonging to the
shippers, are also handled by the cargo owners themselves.
In those cases, the loading and unloading standards of vessels
in departmental ports (ports of the Ministry of the Interior,
the Ministry of the Fishing industry, etc.) are ostablished
by the Ministry of the Maritime Fleet by agreement with the
owners of the ports.
In eases where loading and unloading (and in roadstead
transport) are carried out with the resources of the cargo
owner, the latter must immediately begin loading or unloading
once the ship has arrived and the capta* has sent Information
of the ship's readiness for loading operations. The cargo
owner, in such cases, bears full responsibility for the con-
seauences of delayed loading or unloading.
Observing the proper poocedure of loading, unloading,
stowing cargo on the daiP and making sure that the cargo is
properly separated in accordance with the technical transport
conditions and eommercial rules'aro the duties of the ship's
administration whose instructions should be carried out
?57
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-
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unconditionally by the nort and the cargo owner. In the event.
of failure by the cargo owner or the port to comply with the
directions of the ship's aaministration, the latter can suspend
loading operations until these demands have been not. Losses
involved by stopping the work are charged to the account of
the cargo owner or the port. These cases are recorded in legal
documents.
If spacial equipment or material is required for trans-
porting, loading or unloading, this gear should be provided
by the alippor. In transporting animals, dangerous or other
spacial cargo - unless Shipped on specially equipped ships -
all temporary contrivances are sot up by the shipper or, by
agreement, by the port or the carrier at the expense of the
shipper.
The securing of ordinary light-weight or not Ions,-
measuring deck cargo (lashing with chains, ropes, and lanyards)
is the responsibility of the carrier Who executes the work
With his own means. If t'co stowing of deck cargo requires
special fittings (keelblockftilltblog, fixtures for stowing
barrels horizontally, etc.), these should be made by the Shippers
or at their expense by agreenont between them and the ports of
dispateh._
In conveying goods in through transport by rail and water
combined all material for reonforcing and separating goods should
be sent out by the Shipper with the goods when dispatched by
railroad.
If the loading of heavy-weight or long-measuring goods, or
of goods taking up a lot of space, requires special work in
reenforcing the hulk or deck of a ship - or work involving
carlIxantry or forging - this work is carried out by
?
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?.??????? am?TMI,
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111.11????? ???=0.6.
the port or the client (depending on who is doing the loading)
at the expense of the shippor.
Tho norms for mooring ships for loading and auxiliary
operations, and also the order for handling ships by the ports,
are established 1)2/ the "Rogulation on the norms and the system
of calculating the mooring tire of Soviet vessels in maritime
ports and landing points," ratified by the Uinistry of the
Ilaritino Fleet. Tho rules ostablidied by this "Regulaton
are compulsory for all ministries and departments shipping
cargo by sea.
In connection with the constant improvement of technical
equipment of the ports and the application of progressive
methods of handling ships, these rules and norms for loadinf,
and unloading are periodically reviewed with the aim of
reducg the moorinc: time.
"The Regulation on the norms and system of calculating
the moorins time of Soviet vessels in maritire ports and
landing Points" determines:
a) The system of establishing the norms, obligatory for
every port, for the simultaneous handlinc: of vessels (the
number of dhips which the port should handle at the safze time.)
b) The obligation of ports, ship lug compAnies and
vessels to inform one another about the approach of vessels
and about other natters necessary for planned and productive
work by the ports in loading and unloading.
c) Definite obligations of the ports and vessels for
preparations and operational planning of handling cargo.
d) The system for calculating roorins tire for vessels
in Ports and the, sptemfor formuleting the corresponfling dociran-nts.
z
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?.1
.?????ED
j
0 The rules for applying the norms OF cargo operations.
"The Rogulationll astablidhes thefcl sification of cargo,
according to vfnich the norms of Cargjoper tions aro made up.
al
id are general norms --fox' all pot, -.1d spooial ones --
for individual ports.
In addition, "The Rogulation" includes the norms for
fueling ships with liquid and solid fuel and norms for carrying
out all possible auxiliary operations (maneuvering, towing,
piloting, customs operations, formulating documents) inspection,
disinfection, dogassing and exterminating rats from vessels, etc.)
2 - Norms for Simultaneous handling of -Vessels
In conformity to the quarterly plans of maritime transport
and in accordanco with the volum of imports and exports on
foreitp vessels agrood upon by the ainistry of the Maritinn
Fleet and the Mnistry of Poreign Trade, norms for the simul-
tanoous handling of thips are established for each port of
the Ministry of the "..laritirn Fleet. For individual, large
ports where ships often stop to take fuel, a norm for simul-
taneous fueling of adDs is also establiihed.
In determinirg the norm for the simultaneous handling
of vessels, the follo7;ing is usually tabian into consideration:
the spacial features of port warehouses and wharves, the tech-
nical equipment and transit capacity of the -*arts, and the
labor force provided.
In the ports of other departments the norm for the simul
taneous handling of ships of the Ministry of the Maritime Fleet
is established by agreement between: the shipping companies
:and the ministries owning the ports.
?
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01???????
In Soviet Danube ports, the norms for simultaneous handling
at foreign vessels are established by agreement between the
Danube Soviet State Shipping Company and associated shipping
companies.
The present "Regulation on the norms and system for
calculating moaning time of Soviet vessels in maritirn ports
and landing points" stipulates that all vessels arriving in
port within tho period designated by the ton day schedule
should have preference in being serviced by the port over
vessels which have arrived outside the ton-day schedule
(within the limits of the norm). If free docking facilities
and labor are available, the port accepts ships beyond the norms.
3 - Information, Preparation for Cargo Operations
and the Operational Plan for Handling Vessels
The captain of the vessel must inform the port of destination
of the presumed time of arrival 48 hours before arrival. He
must then repeat this information 24 hours before the scheduled
time of arrival, and, finally, give the exact time four hours
before arriving. In the first report tho captain indicates
the draught of the vessel (during disembarkation), the dead-
weight capacity of loading equilimInt, the quantity and type
of cargo according to groups and holds, the. quantity of heavy-
weight and long-measuring cargo,. listing their weight and
length, aid characteristics of the clack cargo. Fo., bulk cargo,
the name of tte consignee is also reported.
The port, in turn, no later than two hours before the
ship arrives, informs the captain of the noring place and
the method of carrying out cargo operations.
Upon arrival of the daip in port, the paptain submits
to the harbor officials (or if cargo operations are being
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Comm..
carried out by the client, tb the representative of the client)
a.written report indicating the tine tbe ship will be ready for
handling, viz when the holds, loading equipment and hatches
will be ready for loading or unloading.
By the time loading or unloading is to start, the port
(or client) should assure the readiness of the cargo (for
loading), the working area, the stevedores, the conveying
machines and transport, and also the proper oquipmont and
Pigging.
The.ship should receive and hand over cargo, but the
poet (or client) Should load it on board ship and unload it
in complete conformity with the loading plan, not allowing
carga parcels covered by bills of lading to be split or mixed
up.
Before cargo operations begin, the part makes an operational
plan and adjusts it with the representative of the shipping
company (the Shipping agent or captain of the vessel). This
plan indicates the time for fulfilling all operations in
servicing the vessel - auxiliary manipulations as well as
loading, the combination of operations, and the names of
representatives of the port and the shipping company responsible
for servicing the ship.
The total time established by the norms for fulfil11ng
all non-ceMbIned operations in servicing the vessel - auxiliary
processes as well as loading - is considered the complete
(gross) mooring time of tbp ship in port according to the norm.,
The auxiliary operations - supplyinE;tba ship with fuel,
water, technical material, spare parts and provisioning,
filling out loading documents, arranging the arrival and
departure. - are accompiisbed as a rule ALmultaneausly with
-
?eam...11.
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(111.????? ??????/MI
the loading oporationb. :then o.uxiliary operations cannot all
bo carried out dt.cring the load.ing, time for fulfilling such
auxiliary operations according to the established norm is
added to tb-?tooring time sot for cargo operations.
Calculating the Time for 'Mooring
The mooring time is calculated from the moment the ship
is moored to the wharf or lies at anchor within the limits
of tho port waters according to harbor regulations and in.
i?oadiness for cargo operations on the basis of the captain's
written notice. Tho mooring tit 9 is considered as terminated
then the ship departs from port (starting to unmoor from the
wharf or to get under way.)
The time for loading operations on ships which have
arrived according to preliminary notices and have been In-
cluded in the /20M for Ett Mat anoous servicing is s calculated
from the tine indicated in the captain's repert concerning
the readiness of the ship; or if the ship is late in terms
of the time stated in the final notice - or in the absence
of such information - the time for loading operations is cal-
culated to start not later than four hours after the captain
has sent his rept about the readiness of the vessel.
For a ship which has arrived in port ahead of time ,in
terms of the norm for similtaneous servicing, the titsa for
loading operations is calauls_ted to start with the completion
of the planned period for servicing ono of the vessels already
undergoing loading or unloading, even if the actual servic
of this ship has not 'been completed; or, If servicing is
completed o.head? of time, the calculation starts with the
actual completion of servicing. The time for including a.
?s---
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vessel in the norm of simultaneous servicing is calculated in
conformity to the specialization of typos of cargo according
to the norm approved for the port. For example, if two Ships
carrying coal, anotbor carryins general cargo, and still another
carrying grain enter the norm of simultanoous servicing ostab-
lished for the port:, the coal carrying ship waiting to be docked
enters the norm of simultaneous servicing only after the end
of the planned period of servicing the other coal-ship, or at
the completion of servicing when finished ahead of time. This
applies oven if servicing of the Ships with other types of
cargo has boon completed earlier.
The norm for =ening time can be increased under the
following circuMstances:
a) In the event of foul weather vihich Prevents loading
or unloading of a given cargo, provided that when the bad
weather set in, the tine fixed for a given ship has not
already expired according to the norm.
b) In the event of standing idle genurrag27 duo to the
ship's loading mechanism being in disrepair, it the ship is
being serviced by such machines.
c) In the event that a dlip is In port where vork is
conducted in one or two shifts - during the tiro when the port
is not doing any loading operations, provided that the time
for servicing a given Ship lass not yet expired.
d) In the event of a strong wind, which prevents cranes
from working (if the ships are being serviced only by port and
floating cranes) - for the tire of interruption caused by
the suspension of rork for the above reason. The strength
of the wind when work with cranes is suspended is establisl,ed
by an order fron the port taking into account the local con-
ditions and types of cranes.
S.111????
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e) In the absence of electricity for operating convoying
machines ashore, if the port is supplied with electricity from
an outside organization.
f) Yihen it is necessary to carry out work rthich involves
Special reenforcement or unlashing of hoavyweight or non-
lighterage 5egabaritnog7 deck cargo. The norm is increased
by the amount of tim actually spent on these operations.
The remooring of a ship at the time of cargo operations
is allowed only once during a voyage. Tho time spent in
adlitional removing, carried out at the roquest of the port
or client, is calculated as mooring time. The time spent
remooring for the Duripose of taking In fuel when this is not
done during loading operations - and also the time spoilt re-
mooring for taking and handing over inflarmable goods and
goods transported in refrigerated cargo boats - is added to
the norm for mooring time in cases where refueling ennnot
be porformed during the process of loading.
Cargo documents should be filled out by the port (or the
client) and handed to the administration of the ship during
the process of loading, as soon as the loading of each parcel
of the cargo shipped on a soparato bill of lading is completed.
Doumonts for the last parcel of cargo should be made out in
the course of 30 minutes to an hour - depending on their
complexity.
Below, samples are given of calculatiorc of mooring time
for ships in ports. The samples have been drawn up in accord-
ance with "Tho Regulation on the norms and system for calculating
mooring tine for Soviet vessels in maritime ports" (Ordet, Number
732, Ministry of the liaritine Fleet).
Example One: The steaship "Borodino' (five hatches),
rsamm.ff Aleo
:S.'
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carrying goods in intra-sca cabotage, arrived on 2 November
at 3:40 p.m. in the port of Riga with a cargo of coal and
equipment. The cargo doliverod by the vessel totalled 7050
tons - of which coal constituted 7000 tons and hoavy. equipment
50 tons.
At tho tiro of S.S. Borodino 's arrival in Riga, two
coal-Ships, 17:hid-Iliad arrived earlier, were being unloaded.;
thus the norm for d. uultnooua s orvicinr? of Vessels oarrying
coal (two nhins) established for the port was filled. It. was
evident from the document concerning the mooring tiro of the
Borodino that unloadinr of one of the 'previously arrived ships
should be comnloted according to the norm of 2 November at
11 p.m. Consequently, the Boro-lino would be included in the
norm from that ti on for simultaneous unloading.
The Captain of the Borodino inforned the port that the
vessel would be ready for unloading all five hatches at 5:10 p.m..
2 Novcrmber (the moment of being moored at the dock and registering
the ship's arrival in port).
The Shin discharged the load at one dock.
Unloading of the vessel by the port actually started on
2 Novembor at 8 D.rds (three hours prior to the Shin being
included in the norm for simultaneous handling). Unloading
was completed on I. Novembor at Unloading operations
were Interrupted for four hours because of the absence of
electric current sunpliod from the city.
The ship left t'm dock after being unloaded at 6 D.M. on
14. November.
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1.
Calculation of the Borodino's mooring time
1 - Basic Data
Ship's arrival in port (starting to count gross
mooring time) - 2 November, 3:40 p.m.
2. Readiness for handling, according to
nbtice - 2 November, 510 P.m.
3. Inclusion of the ship in the norm of
handling - 2 Novomber, 11 p.m.
Ship's doparture (calculation of mooring time
completed) - I. Novombor, 6 p.m.
Total mooring time in port - 50 hours, 20 minutes.
captain. a
simultaneous
2 - Calculating the Tire for Servicing the Ship
1. Loading Operations
Iiime accord- .1Time in ship
ing to the hours actually
norm in ship spent by the
hours port
(JOUrs and (hours and min-
minutes) utes)
Lotal cargo in five .Norm for
hatches - 7050 tons, unloading
including: (tons per
Ship hour)
Coal - 7000 tons
Heavy Equipment - 50
tons
3112
25
14-9
2
20
)- 37
00
Total timo for
loading operations
51 20 37 00
(from 11 p.m.
2 May to /4. p.m.
it_ Llay leas idle
time duo, to ab-
sence of o1ec7T- '
? .?t?r1.---V----1-ei .
434
:X11.
!.?4:
20
a.
b.
2. Auxiliary Operations
Mooring of vessel at dock
(from moment. of arrival to
aetual mooring)
Registering of ship's
1
'71
arrival
1
00
4
rvt
0.
Formulating .cargo dominants
30
d.
Registering ship's departure 3.
00
Total tire for auxiliary
30
Regista,ation. taken
care of during-
1 waving process
.
1 30
operations S 3 50
--- a ,-
30
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3. Non-productive
lotal cargo in f_ve
hatches - 7050 tons
?Clem for
unloading
(tons per
ship hour)
Dellwrrago
allmo according
to 'ale norm In
Ship hours
(hours and
minutes)
a. Waiting for ship to be in-
cluded in norm for simul-
taneous servicing (from nnmont
captain gives notice of ship's
readiness)
b. Interruption in work due to
absence of electricity
5 50
14.
00
J
in ship
hours actually
spent by the
port
(hours and rim-
utes)
5 50
4-
TBT-0:76n-productive demurrage 950
00
9 50
Total time for servic
1%.
ship
.11????????*..???00.111a1.????????
2
Savings made in mooring time', 14. hours 40 minutes
Cost of maintaining Ship in port - 255 roubles per hour
Bonus credited to port - 371..0 roubles
Example 2: The steamship "Strellna" (four batches)
arrived on 5 iJay at 12:30 p.m.. in the port of Leningrad to be
loaded with general export cargo.
Since a fro wharf was available and the norm for simul-
taneous handling was not filled, the "Streltna" docked
immediately. At the sate time the ship's hatches were opened
and the crew was ready to take on cargo in accordance with the
captnIn's notice.
The eaptaia of the vessel had warned the port in advance
of the SninIs need to ta,ce fuel and water.
Wring loading, the ship was :Shifted twice by- the port
from one wharf to another. The ship-Ivas pplied with, Water
during loading., but fueling was taken care of after loading
bad been eompleted, although this could have, been done during
these operations. The port spent three hours in fueling the
-70
0
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Dec assi ie. in art-' anitize. opy Approve, or e ease 8 /8 / :
'-'11`: -8 84 '88 88 888 -
elftwomm
vessel (from 8 p.m. to 11 p.m'. on 8 Lay). Tho loading started
on 5 May at )4. p.m. and was completod on 8 May at 8 p.m. After
loading and fueling was completed, the delip was not ready to
depart because the ship's compaaywas not complete until .9:15
on 9 May. After the alip's companywas assembled and the
departure was arranEed, the ship vias unmoored from the wharf
and sailed at noon on 9 gal'.
Calculation of the Strelina's roaring time
1 - Basic Data
I. Ship's arrival in part (starting to count mooring
time) - 5 Tjay, 12:30 p.m.
2. Readiness for hnndling, according to captain's
notice - 5 May, 12:30 Dian.
3. Inclunion of the shin in the norm for similtaneaus
handling - 5 May, 12:30 p.m.
Ship's departure- (calculation of mooring time
connle,??ted) - 9 May, 12 noon.
Total mooring time In port -95 hours, 30 minutes.
2 - Calculating the Time for Servicing the Ship
1. Loading Operations
Total cargo in. four
batches - 2140 tons,
including:
Jlorm for .TIme according ,
loading to the norm in
(tons per ship hours '
ship hour) (hours and min-
Time in shiP
hours actually
spent by the port
(hours and min-
utes)
Ferrous manganese in.
bulk - 560 tons
Asbestos, bone duet
1 80 tans ?
Total time for
loading operations
72
6
8 00 -
00
00
74 30
74, 30
(from 4 pod. 5 Wr
to 8 p.m. 8 May
less time spent
Shifting from, one
vatnrf toanother-
1.hbar 30 min:
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usi.11.1141
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17
41.??????
2. Auxiliary Operations
Total cargo in four
bachos - 2140 tons
Worm for
loading
(tons per
ship hour)
'Limo accord ng
to. the norm in
ship hours
(hours and min-.
utes)
a. Mooring vessel to wharf
b. Registering ship's arrival
(in the manner for ships
travelling in oversoas
navigation) 1 30
c. Shifts 0 45
(ono Shift)
4,5
d. Formulating loading documents
(In the manner for ships
travelling in overseas
navigation)
o. Taking in fuel not during
loading operations
f. Registering ship's departure 1
1 30
g.
Unmooring ship from Wharf
Total time for auxiliary operations
0
Oa. vo?
30
45
in s p
hours actually
spent by the part
(hours and min-
utes)
1 00
1
1 30
(two shifts)
1
1
00
3
00
1
00
45
3. Nen-productive Demurrage
a. Demurrage in waiting for
loading to begin (after
registering arrival)
b. Demurrage for Which the 'ship
is to blame, after completion
of loading due to delay in
assembling the ship's company
Total non-pro uctive ? emurrage
TiFITTEf7TERT-TiF-EOVIFIET.; ship
ONO ?????
2
00
10
15
.10
15
1
1
12
51
'
00
95
Excess mooring mooring time - 44 bourn, 30 Minutes
Cost of m*aintenance of Ship in port - 165 roubles
- per hour
Fine due to the, Shipping company - 73
eC,
roubles,
50 ko'ooks
4,111.???=
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5 - The Ships Documnnt and Calculation of Mooring': Tiro
The tire actually spent by the ship in port is accounted
for in the eilip's documont in a prescribed form. In the
document the time spent on all operations from the time of
the ship's arrival in port until departure is recordedirtith
an accuracy to approximately five minutes). The ship's
document is signed by the captain of the vessel and a repre-
sentative of the port (or of the client). If, in a certain
Pert, a ship is unleaded and then takes on cargo, ship's
documents are drawn IVO separately for loading and unloading.
On the basis of the atip's document, an account is drawn
up of the time p-loted by the norms and the time actually
spent; conclusions are then draun regarding the tine saved or
lest. For servicing a ship in less tine than at by
the norm, the shipping company pays a bonus; for spending mere
time in dispatching a dlip than fixed by the norm, a fine is
paid to the shipping company. In case of sirPOtanecus dis-
patch of a ship by means sncl resources of several clients, the
anount of the fine or the bonus is distributed among the clients
in proportion to the baLk of cargo belonging to each of them.
In settling accounts between the shipping companies and ports
of the lanistry of the --laritire Fleet, for the pre-deadline
dispatch of a vessel a bonus is paid to the ports at the rate
of 50 percent of the planned cost of operational maintenance
of the SaiD in port; far demurrage, a fine at the rate of
100 percent of the cost is exacted from the porta.. The settle-
ment of fines and bonuses with clients carrying out loadinc-
operations -with their on means is made according to progressive
rates published in Tariff Llama' -.do. 1-D4 If the ship is
-173
MEW?mm.
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loaded or unloaded with the assistance of the port, then the,
calculation of time, ami also the rates for fines or .bonuses
are made by the port. When. loading and unloading is carried
out with the means at disposal of the client, the calculation
of time is made by the Shipping company.
6 . Ship-hour llorms for Loading Operations
The success .achieved in trans-Shipping cargo in bulk .
by the skilled crane operators of the Soviet ports; the appli-
cation of speedy methods for dispatching ships in Baku, Oddessa,
Kaliningrad, Leningrad, Vladivoc7..,:A and other ports - revealing
the enormous potential of intensified productivity of labor -
enabled considerably to increase the Ship-day norns for
loading operations in tho post-war years.
Norns for loading oporations are established in ship-hours,
distinctions being made between the typo of cargo, individual
ports and, partly, according to individual ships.
The ship-;hour norms now in effect are divided into two
groups:
a. General ship-boar norns, established for every port,s
indepandent of the method for carrying out loading operations;
b. Spocial'ship-hour norms, applicable in specifically
designated ports for individual types of cargo.
Spacial Ship-hour norms have boon establithed, based on
the possibility of increased loading activities in dispatching
mass cargos which ara particularly-handled by a certain port.
(This is done primarily in specially equipped docks with. special
loading arrangemaats.) Noreover, special bave boon
established for loading and unloading heavyweight cargo of*
five tons or more, so'ad also for ships *hose structural
Oft.
tr.
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particularities influence the spood with which loading operations
are carried out.
Cargos have been divided into seven groups, based on the
labor capacity for handling ship-loads. General ship-day norms
have boon established in accordance with this classification.
All ports, depending on their equipment of loading
mechanisms and on conditions for executing loading operl.tions
where loading Is carried out with the Ship's own resources,
have been divided into six croups 5etworkg (setok).
Ship-day norms for each port and landing point are
reckoned on the basis of conducting loading and unloading
work through all hatches of the vessel, regardless of bow many
hatches are actually being used for loading during this or that
shift. In dispatching ships which are taking in or giving out
cargo not through all hatehes because the cargo for a certain
Port is not storied away in all the ship-holds, or because the
wharves are not ready for loading, the mooring tiro is calculated
according to the number of hatches actually being worked in a
given port.
Norms for loading operations are reduced by percent
during continuous reweighing of separate cargo parcels. In
unloading parched, petrified, frozen or deteriorated goods,
the norms are also reduced by 10 percent. WI:Nan the condition
of the cargo requires particularly laborieus preparatory work,
for example, blasting, cutting Into pieces, the use of pneumatic
tools, etc., the norms are lowered to the extent deternined by
agreement between the Dort (or client) and the captain of the
ship.
If a ship is being loaded with graia in two ports, an&
takes on less than 4.0 percent of the cargo In' the second Dort,
omm.Malr
,
411
P
4f:a
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the norm for the second port is lowered by 20 percent.
If work is being conducted in an outside roadstead in a
rough sea with a wind from 3 to 5 points, the norms are lowered
by 20 percent. In a rough sca with a wind of iore than five
points, anchorage time is not counted.
An exception to the general rules are the cargos of the
Ministry of Fishing Industry being loaded or unloaded in Par
Eastern roadstead points under the control of this ministry.
At present special :Thip-day norms have been established for
b:andling Tnrmitigo vessels, approved by a joint order of the
Ministries of the Maritime Fleet cuid the Fishing Industry of
the USSR. These special norms have been ostablished for ten
groups of cargo: Fish in barrels, fish in Dackings, fish
without packings, coal, salt in blocks, s.t in packings,
sawn timber, logs, clapboards, and zonora1 cargo.
7 Caclulating the Mooring Time for Foreign Vessels
Tha 'mooring time for foreign vessols in Soviet ports
is calculated according to norms established by agreement
between the Ministry of the garitime Fleet aad the ainistry
of we,3cign Trade USSR. IT there is a divergence of the norms
indicated in the charter-parties and the norms agreed upon
between the two ministries, then the calculations between the
Dort and the export-import associations of tbo Llinistry of
Foreign Trade are made according to the norr.s agreed upon,
taking into account the other conditions of the charter-party
(such as the cormeneenont of calculating the loading times
oxeopting from loading time Sundays 'Ind holidays, etc.)... The
7
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calculations between the associations of the Ministry of Foreign
Trade and the ship-owner aro made on a time-Sheet, compiled
in complete conformity with tho norms of the charter-party.
Soviet vessels chartered by foreign charterers aro dis-
patched in Soviet ports accordins to the general norMs estab-
liShed for vessels in the coasting-trade; the reckoning up of
fines and bemsea,for loading-unlo7,dtag operations is made
vith Soviet Shippers and consignees regardless of the norms
listed in the Charters.
3 - Liability for Demurrage of Vessels
Beyond the Estmblisbod norms
For delaying shipping R:ad toying facilities beyond the
established tim periods In loading or unloading or owing to
delivery of cargo not in duo time, the consignor or the con-
signee pays a fine to maritime transport. The shipper also
pays a fine whoa loading was carried out with the expedients
of the port, but the delay of the ship was caused by the
shipporls failure to deliver the cargo prolJptly alongside ship.
The fine for demurrage of Iessels is
paid to the extent
determined by the tariffs.
If the client systematically delay's cargos under loading
operations beyond the established tire periods, the shipping
caavany, with the permission of the Ministry of the Maritime-
Fleet, may intrease the fine for demurrage of vessels two 00.
three times.
The fine for the demurrage of .vossels is ekactod through
credit institutions, , without engagement. 5 bezaktseptnemporyadirg
Disputes concerning fines are settled by judicial organs at
the place where the defendant is located.,
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For completing loading or unloading of vessels ahead of
time; the shipper (or consignee) who executed loading operations
is paid a bonus to the extent determined by he tariffs. The
client forfeits the right to a bonus for pro-deadline loading
or unloading if he violates the technical rulos for loading
operations and distribution of cargo on a vessel, or if be
damages tho
For damaging a vessel in loading and unloading when
conducted with the shipperts or consigneets own resources,
the client pays a fine amounting to thrice the cost of the
damaged parts of bho ship. The shipping company, in turn, pays
compensation equal to three tiros the damage of shoreside
equipmsnt belonging to the client inflicted by ships caned by
the shipping company.
?
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miP.P.0 ?
CHAPTER 18. TRANSPORTING PASSENGERS, BAGGAGE AND GOODS
, .X-Organization of Passenger Traffic in
Maritime Transport
pp014-431
The steady rise in the material welfare and the cultural
level of the workers in our country and the increase in the net-
work of rest-houses and sanatoriums contributes to the expan-
sion in maritime passenger transport and necessitates the im-
provement in serving passengers in ports and .on board ships.'
The passenger transport is regulated by the following
basic rules and legislation:
a) The Code of Mercantile Navigation (pp 124-136).
b) Sanitary regulations for maritime passenger ships.
c) The regulations of the Maritime Register of the USSR
concerning passenger ships.
d) General and special regulations for transporting
passengers, baggage and goods on vessels of the Ministry of
the Maritime Fleet (Tariff Manual No. 4-M).
e) The special decrees and administrative rules of the
Minister of the Maritime Fleet.
The passenger transport is divided into the following
categories:
aY Long distance transport (within the boundaries of
the whole basin. and between USSR ports located in various basins.
b) Local transport (within parts of the boundaries .cf
a single basin, not exceeding 100 miles). -
As a rule, passenger transport can be carried out only
on specially equipped passenger and cargo-passenger ships which
are authorized to conduct such transports by the Register of
the USSR.
Passenger transport on cargo vessels can be authorized
as an exception by agreement with the Register of the USSR
544,
4
""tkt
tt
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-5.
and the (vodsanmed) Administration of the Ministry of Health,'
observing special instructions (For Instance, the transport
of organized groups of fishermen going to or returning from
fisheries, or seasonal workers and settlers, etc.)
Depending on how well the ships of this or that line are
equipped and on the number of calls,made at intermediate ports
(consequently, on the commercial speed), the following cate-
gories of passenger lines have been established:
a) cargo-passenger
b) rapid
c) express.
The claSsification of lines into cargo-passenger, rapid
or express categories is made by the Ministry of the Maritime
Fleet. The number of vessels assigned to this or that line
is determined by the size and composition of the passenger flaw.
The movement of passenger vessels is carried out according
to schedules drawn up by the administrations of shipping
companies and confirmed by the Ministry of the Maritime Fleet.
Sailing schedules for local lines are approved by the heads
of the shipping companies.
Schedule are made for an entire period of navigation or
for a particular season (summer, fall); they are posted in
forms of posters in all ports and landing points where passen-
gers embark and disembark.
The schedule-posters contain the following information:
a) The designation or the line (cargo-passenger, rapid,
express).
b) The period during which the schedule is in effect..
c) Date and hour of arrival and departure at all points
where the ships are stopping.
d) Places where tickets are sold.
e) Points of goners], information (regreshment
rooms for mothers and children, luggage"rooma, etc.).
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2-The Dispatch of Documents for Passenger Transport
and the System for Selling Tickets
Page 124 of the Code of Mercantile Navigation indicates
that "according to the terns of maritime transport concerning
passengers, the carrier is obliged to transport the passenger
from one place to another by sea-mute in return for a stipulated
compensation (fare)".
The documents confirming that a contract for passenger
transport has been concluded are the passenger tickets in a
form established by the Ministry of the Maritime Fleet.
On shipping lines carrying passengers in great numbers
between certain ports, cardboard tickets have been introduced.
On other lines cut off ticket forms are used.
In accordance with the tariff of fares, shipping companies
are subdivided into two groups, and each group has been allotted
special serial numbers for the types of tickets (Table 6).
Table 6
Description of Line First Class Second Class Third Class
For Murmansk, Northern, Baltic and Caspian Shipping Companies
Cargo-Passenger
F-8
F-10
F-12
Rapid
F-13
F-15
F-17
Express
F-18
F-20
F-227
For Far Eastern, Sakhalin, Poichatko-Chukotka? Black Sea
and Danube Shipping Companies
Cargo-Passenger
F-9
F-11
F-12
Rapid
F-14
F-16
F-17
Express
F-19
F-21
F-22
Third class ticket forms 'for both groups of 'shipping
companies have identical numbers, since the fare for passengers
without reserved berths in the third class is the same as for
all shipping companies. Third class without reserved berths,
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are also used for transporting passengers on deck.
Ticket forms are issued in four series (A, B, C and Ws
according to the following distances of travel:
Series A--1 to 150 miles
Series B--151 to 400 miles.
Series C--401 to 1200 miles
Series D--1201 to 3200 Miles
The form for reservation of.berthssa"with the tickets
and carry the same numbers as the tickets, but the letter "P".
is added--F-8P, F-13P, F-22P.
Besides tickets Which passengers buy in maritime transport,
there also are yearly tickets, season tickets and tickets good
for one way trip of; travel for workers of the Ministry of the
Maritime Fleet. Such tickets are used in connection with the
professional and personal needs of these workers, and are
issued as follows: by the Ministry of the Maritime Fleet for
travel on vessels of all maritime shipping companies; by the
administrarion of a particular shipping company for travel on
vessels at the disposal of this company.
Passenger tickets and reservations are monetary documents,
They are considered as, and issued as documents subject to
strict accounting. They are subject to numerical accounting
by the piece from the time, they come off the printing press
until they are used up.
The sale of passenger tickets is effected by special
booking-offices, which are opened by the shipping'companies
and.ports in maritithe passenger terminals and in cities (city
booking-offices). At points where a great nitMber-of passengers
moves through, special booking.efices are opened: for transit
Passengers, for persons with health resort Permits and for
military personnel.
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Tickets are sold on the day the vessel departs. The
booking-office should be opened not later than an hour before
and close five minutes before the time of departure. In
addition, preliminary sales of tickets are made.
3-Embarkation and Debarkation of Passengers
The heads of the ports and passenger terminals must
take all measures to insure the utmost comfort for passengers
during embarkation and debarkation. Prompt information about
arrival and departure of vessels must also be given.
At terminal points, passengers should embark not later
than an hour before the ship departs; in intermediate points,
embarkation should take place no later than 30 minutes before
departure. Passengers are informed that embarkation is to start
by the ringing of bells, steam whistles or by radio.
Only persons with tickets are permitted on board ship.
Visitors are not allowed on board. Visitors are admitted to
the pier only if they have obtained platform tickets.
Tickets and the weight of small baggage should be Checked
at the gangway.
Upon the ship's arrival in port, passengers disembark only
after he ship has come to a complete standstill. and the gang-
way has been lowered. Passengers must hand over their tickets
to the ticket inspector upon debarkation.
.The shipping company is entitled to refuse transportation
to passengers and baggage in the following cases:
1) When a passenger does not agree to submit to the rules
and tariffs in effect for maritime transport.
- 2) If transportation of passengers or baggage is sus-
pended by an established order.
3) If there is no free accommodation on board the'
departing ship.
0A1
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4.) When a passenger is intoxicated or ill in such a
manner as to 'jeopardize the health of other passengers unless
a special cabin is set aside for this passenger.
4-Serving Passengers on Shore
All ports where passengers embark and disembark should
have premises for serving passengers; those premises should
correspond to the size of the passenger flows (premises such
as terminals, pavillions, etc.).
In passenger terminals of ports with a large passenger
flow, there should be:
1) a booking-office
2)
3)
4)
5)
6)
7)
8)
shop, repair shops for shoes and clothing, etc.)
9) luggage offices for checking small luggage
10) an information bureau.
,In all terminals there should be a supply of hot water
a waiting room
a room for transit passengers
a Red Corner, supplied with newspapers and magazines
a refreshment bar (restaurant)
a room for mothers and children
a first aid station
rooms for providing every-day services (a barber's
for passengers.
By agreement with thehabor administration, commercial
organizations can open on passenger piers or near passenger
terminals, stalls and stores for the sale of essential food
and manufactured goods.
On the premises of passenger terminals, there should be
posted, incconspicuous places, sailing schedules, lists for pices
of tickets and reservations, charges for porter service and
the basic rules for passenger travel, etc.
4tr--
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5-Serving Passengers on Board Ship
Passengers with reserved (sleeping) berths, receive
a set of bed clothes for a special fee. In addition, all
cargo-passenger ships should have individual toilet kits, which
are also issued for a special fee:
All cargo-passenger and passenger ships, except those on
local lines, are equipped with baths and showers, which pass-
engers can use in return for .a special payment.
On large passenger ships on fast and express lines, the
administration of shipping companies can provide special
facilities for cleaning, ironing, and making minor repairs
of passengers' underwear and clothing. Barber's shops can
also be set up.
All passenger and cargo-passenger vessels should provide
libraries and reading rooms for the use of passengers, supplied
with a sufficient quantity of books, magazines and newspapers,
and table games (chess, checkers and dominoes). Large ships
should have radios.
Passenger and cargo-passenger ships have special cabins
for mother and child or children's cabins.
6-Transporting Passengers
Every passenger must obtain a ticket, and the adminis-
tration of the vessel must furnish the passenger with acco-
mmodation corresponding to the ticket paid for. Otherwise*
the passenger can refuse to travel and can demand his money
back.
If a passenger with justified reasons (illness, etc.)
cannot depart by ship for which he has acquired a ticket, he
is entitled, upon presentation of a document confirming the
reason for delay, to demand that an endorsement be made on
his ticket concerning the postponement of departure. To renew
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its validity, the ticket should again be punched on the day
the passenger embarks. The validity for a reservation of
accommodation on board cannot be extended in such cases; and
the money for reservations not made use of is not refunded.
If a passenger does not wish to use the ticket and the re-
servation he has bought, and declares this in time, (in a city
booking office?not later than the evening before the ship
departs; in .a harbor booking office?not later than two hours -
before time of departure), he is refunded the full cost of
the ticket minus the commission fee for preliminary sale and
half the cost of the reservation.
A passenger is entitled to a refund for am unused ticket
if he is not furnished with reserved accommodation although
he has a ticket with a reservation; he is also entitled to a
refund if he is removed from a ship because of illness.
During the voyage the passenger is entitled, if free
berths are available, to move from his quarters to a higher
passenger class or to quarters with greater comfort; in this
case the passenger must make up the differencin fare or pay
for supplementary conveniences.
?
A passenger with a ticket covering a distance of more
than 200 miles is entitled to interrupt his voyage once, with-
in the limits of the period for which his ticket is valid.
The interruption is officially noted by the head of the port .
(or terminal) by an endorsement made to the effect on the
ticket. Upon resuming the trip the ticket should again be
punched. The cost of reservation for the untravelled distance
is not refunded. For 'further travel, a reservation should
,again be obtained at the booking-office 'for transit passengers.
If for reasons for which the ship is not responsible
(average, inclement weather, etc.), the vessel cannot call
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.?
at a port designated in the schedule, then passengers booked
for this port should disembark at the nearest port possible;
from there the shippinecompany must transport them to the
port of destination free of charge.
7-The System Under Which Passengers Bring Small Luggage
Classified as small luggage are easily carried articles
which can be placed in a cabin or on special shelves in public'
premises.
When travelling by ship, every passenger is entitled to
bring small luggage, free of charge, to the extent of 16
kilogram per adult passenger and 8 kilograms per child, ,
according to a child's ticket4. When travelling on suburban
or local lines, small luggage of 35 kilograms per person is
permitted free of charge.
In the weights for small luggage given above are not
included the following items, which passengers may bring for
their personal use: brief cases, umbrellas, walking sticks,
books binoculars, unloaded shooting guns, fishing rods, etc.
It is forbidden to bring articles as small luggage which
could damage or dirty the ship. Such things include inflammable,
explosive, poisonous and evil-smelling items and loaded fire-arms.
For bringing small luggage over and above the share per-
mitted, and items prohibited to be transported as'small luggage,
the passenger is liable to pay a fine.
The safety and preservation of small luggage not left in
the check room is the responsibilty of the passenger. The
administration of the ship is not responsible for damage or
theft of small luggage. The carrier is liable for the safety
of small luggage only if the passenger can prove that loss or
damage resulted from design or negligence on the part of the
carrier. (Page 136 of the Code of Mercantile Naviggtion).
8-The System for Transporting Baggage and Goods
Classified as baggage are articles which the passenger
hands over for shipment upon Presentation of his ticket.
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Baggage should be shipped on the same vessel and by the same
voyage for which the pa ssenger obtained his ticket.
The passenger's baggage should be packed in properly
locked suitcases, trunks and baskets, in securely tied sacks,
bundles or parcels, and plywood chests, Only the following
items can be accepted unpacked: bicycles, skiis, sporting or
children's sleds and portable household furniture, not ex-
ceeding a weight of 100 kilograms and dimensions over 1.5 by
0.7 by O. meters.
Baggage not packed in a manner warranting its safety,
isnot accepted for shipment.
The baggage must be weighed upon reception. No item
should weigh more than 100 kilograms. Small animals, birds
and certain objects (for example, bicycles) are accepted
according to conventional weight.
A baggage receipt, For K-26 (see Supplement 12), is given
to the passenger for baggage accepted for shipment. The
passenger's ticket number is listed on the receipt. The
ticket is stamped with the word "baggage."
To each piece of baggage should be fastened a cardboard,
textile4oven or paper label, or a wooden tag, giving the last
name, first name and patronymic of the ownerr his address,
the port of dispatch, ?the port of destination and the stamped
number of the port of dispatch. All previous markings and
labels remaining on the baggage should be eliminated.
In handing over the baggage, the passenger is entitled
to declare the value of individual- items, as well as of the
baggage as a whole. Where there is a -doubt as to the accuracy
of evaluation, the administration of the port or the vessel
may demand that the baggage be opened for inspection. Digfer-
ences of opinion are settled by experts. Freightage and the
-ge-
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V.,
fee for the declared value of the baggage are collected when
the baggage is shipped.
Upon arrimlin the port of destinAion, the baggage
after being unloaded, is immediately delivered to the passen-
ger who should present the baggage receipt. If the baggage
receipt is lost, the baggage can still be delivered to the
passenger if the passenger produces proof that the baggage
belongs to him.
Baggage which is unclaimed upon the ship's arrival is
kept free of charge for twenty-four hours, starting at midnight
after the ship's arrival. For storage during the subsequent
days, a fee is charged as provided for by taiiffs. Passenger
baggage which is not picked up after 30 days is considered
unclaimed and is removed in a presorted manner.
If the baggage does not arrive in the port of destination
together with the passenger, the port must stamptthe data on
the reverse side of the receipt presented by the passenger
and mark it "Baggage Not Arrived." The shipping company pays
a fine for delay in the delivery of baggage.
If the baggage claimed by the passenger is not delivered
to him in 30 days--beginning from the arrival of the ship on
which the baggage was supposed to have been loaded--and if
the port of destination has not been informed that the baggage
Is being held by ardor of governmental organs,: then the passenger
may consider the baggage as lost and is entitled to claim
compensation from the shipping company.
Classified as "goods-baggage" are goods accepted for
shipment without a passenger ticket. The amount of goods
that can be forwarded is not limited. Transportation of goods
is conducted according to the sane rules governing tranapor-
_
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tation of passenger baggage.
9-The Course of Procedure for Documents
and Accounting in Shipping Baggage
The receipts for shipped baggage or goods are written
out in three copies: a 'baggage receipt, a way-bill and the
counterfoil of the way-bill. They all have identical printed
Pagination.
The forwarding of baggage documents is shown on the diagram
in Drawing 21.
The baggage receipt is issued in the port of dispatch to
the passenger or the person deliverying goods-baggage for
shipment.
The way-bill is sent with the baggage to the point of
destination. All way-bills are registered in the list of
baggage receipts for shipped baggage which is also sent to
the port of destination.
On the basis of counterfoils of baggage receipts which
have remained in the port of dispatch. a report on the dispatch
of baggage is made on Form K-27 (see Supplement 113). On this
form are registered all payments received by the port for
the transportation of baggage. This report, with the attached
counterfoils of baggage receipts, is sent to the control section
checking the income and fees of the ship:,.ing company.
The baggage receipts produced by baggage owners when
their baggage or goods were delivered to them, together with
attached way-bills, kept in the port of destination until the
end of the month.. Not later than on the third of the fallowing
month they are sent together with the list of baggage receipts.
and way-bills for thlivered baggage and the income and fees
of the shipping company. Besides .specifying the numbePr, of
pieces, the weight, the time at arrival and distribution of
baggage, this list shows from where and on what ship the baggage
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arrived; Listed are also the numbers of receipts for various
fees, according to which payments for storing ofbaggage and
other services were collected by the port of destination.
Simultaneously, when sending the list to the controll_
section checking the income and fees of the shipping company,
a report on the delivery of baggage, on Form K-28, (see Supple-
ment 14),-is also sent where all fees received by the port of
arrival during the period concerned for storage, unloading,
and transporting of delivered baggage and goods are enumerated.
10-Check RP01113 for Baggage and Small Luggage
For short-term storage of baggage and small luggage in
passenger terminals arid on large passenger ships, there are
check rooms.
Items to be checked must be deposited with a declaration
of their value.
When a passenger checks his baggage or small luggage
hereceives a tag indicating the number of pieces, the time
the items were checked and their declared value. A copy of
the tag, bearing the last name of the owner, is fastened to
the item which has been checked.
The articles which have been checked are' returned to
their owner after presentation of the tag and payment of the
fee for storage. If. the tag is lost, the articles are returned
to the owner in the presence of a representative of the militia,
upon furnishing proof that the things belong to the cleft/IA-at;
the owner gives- a-voucher stating that he has received his
things and mentions his address and the number of the document
confirming his identity.
Articles which are not eldmed 30 days after being checked
are cleared away in an authorized manner.
The luggage left by 4 passenger in a check room on board
IMIemo?
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11.?.???..
ship not claimed at the terminal point of the voyage after
passengers have debarked, is handed over by the ship to the
check room of the port. In this case, the passenger who does
not pick up his belongings pays, in addition to the usual
storage fee, a fee for the delivery of baggage from the ship
to the port storage room at a rate established for passengers.
11-Baggage and Goods Not Covered by Documents
and Articles Which are Found
Baggage, goods and separate articles found in terminals,
harbor warehouses and on veesels without proper documents
concerning their shipment and storage, should immediately
be turned over with an official repott to the head of the port.
Articles found on a vessel are initially delivered to the
captain of the ship who will announce the finding of the ob-
jects to the passengers. Items not claimed by passengers at
the end of the voyage are delivered, with an official report,
to the head of the port at the final stop made by the ship.
Baggage not covered by documents and items found are
registered in the port in special books. Labels are attached
to all items, designating the name of the port and the ordinal
number of registration. Found suitcases, parcels, sacks, etc.
are weighed, opened, and their contents listed in an official
report. The items which have been opened are sealed again.
After registration of items found or not covered by documents
the port immediately takes measures to ascertain their owner.
To this end, announcements are made by radio, notices are posted
in conspicuous places and inquiries are sent to the heads of
the ports at which the ship called.
The port makes lists of found aid unclaimed articles and
baggage not covered by documents. Such lists are sett to the
administration of the shipping companies in question.
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If the owner of baggage not covered by documents or items
found is located, the items are given to him or sent to a
suitable point to be delivered; the owner of items found must
prove his right of ownership and pay the port all charges
for shipment and storage and the cost of advertising. De-
livery of baggage not covered by documents to the point where
it is turned over to the oiner is made free. of charge according
to a new transport document.
If after 30 days it is has not been possible to lacate
the owner of baggage not covered by documents or of items
found these articles are removed according to the rules for
clearing away cargo not covered by documents. Perishables and
other cargo which must be shipped out of ports in less than
the usual time are removed when the period for their remaining
in port has expired.
12-The Transportation of Passengers and Baggage in Transit
by Water and Combined Air-Maritime Transport
The transport of passengers and baggage in transit by
water transport is effected on one ticket and one baggage
receipt, which are issued for the entire trip by river and
ocean. In transit by water transport for passengers, the
maritime and river Shipping company may use all ports and piers
which conduct passenger traffic and which are included in the
list published in the tariff manuals.
The transportation of passengers and baggage in through
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transport by water is conducted under the rules in effect for
maritime and river transport.
In combined air-maritime passenger transport, all mari-
time ports of the Ministry of the Maritime Fleet which conduct
passenger operations participate and all airports of the State
Air Fleet.
The transportation of passengers in combined air-maritime
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I
transport is conducted under the rules and tariffs for carrying
passengers and baggage by the maritime fleet of the USSR for
part of the trip made by sea, and under the rules and tariffs
for carrying passengers and baggage by the air lines of the
USSR for part of the travel made by air.
The carrying of passengers is conducted according to two
separate travel documents--a ticket for the part travelled
by air and a ticket for part of the trip made by sea.
A passenger wishing to take advantage of combined air-
maritime transport is issued by the maritime port (or the city
booking office of the Ministry of the Maritime Fleet) a voucher
for an airplane ticket on USSR airlines together with the
ticket for part of trip by sea. In exactly the same manners
the airport issues passengers the ticket for part of the air
travel together with a voucher for tickets for ocean travel
in the USSR. According to these vouchers, airports and mari-
time ports must issue passengers, against payments tickets on
the same basis as issued to transit passengers.
13-The Liability of Passengers for
Violating Transport Rules
A passenger is considered to be without a ticket under
following circumstances:
a) If he does not have a ticket or if his ticket has.
expired.
b) If the ticket was not issued for the ship on which
the passenger is travelling.
c) If the ticket has not been punched and the omission
was due to the passenger's fault.
d) If the ticket is marked that the journey was sus-
pended but the ticket has not been re-punched.
e) If the passenger has travelled beyond the ioint
indicated in the ticket by his own fault.
-
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f) If a passenger is travelling on a ticket made out
in the name of someone else.
A passenger without a ticket must pay a fine equal to
twice the amount of the fare according to tariff for the dis-
tance from the port of embarkation to the port immediately
following the point where the passenger was discovered without
a ticket. If it is impossible to ascertain the port of em-
barkation of the ticketless passenger, payment is exacted for
the distance from the last port visited by the ship. This
passenger mustohtain a new ticket to travel further.
In case afpassenger has travelled beyond the port indi-
cated on his ticket through his awn fault, a double fare is
collected for the distance from this port to the port where
he actually disembarks.
A traveller with a ticket for a lower passenger class who
has wilfully occupied quarters in a higher class must pay
double the difference between the price of the ,tidkOts,
according to tariffs.
The minimum amount of the fine for travelling without a
ticket and for wilfully changing quarters en route is 10
roubles. On local transports the amount is three roubles.
If a passenger is found to possess objects prohibited
for shipment as small luggage or if the weight of the small
luggage brought exceeds the established standards, then the
items and small luggage in question are shipped as regular
baggage or are removed from the ship (if they dan cause damage
to the vessel or to people and their property), and from the
owner fine of a fixed amount is exacted.
....????
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FIGURE 21?Diag1'8m for the Course of Procedure of Baggage Documents
1.;
Atb.
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PICTURE CAPTIONS
1/1 sOtirce)
PAGE 126
PAGE 127
PAGE 129
Illustration 18. Cardboard Passenger Ticket
Illustration 19. Cut Off Ticket:?Form
Illustration 2). Reservation AttaChed to Ticket
77
N.
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Ko
CS
a
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9 - : 2: ?
Mprit,ime _Tran.sport"
a
M s
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Transports (Commercial Operation of
Maritime Transport), Moscow, 1955,
Chapter 35, pp 255-282
CHAPTER 35
?rgs
?
A. Yu. Pankrat yev
ORGANIZATION OF MARITIME TRANSPORT-
ATION OF CARGO IN FOREIGN TRADE
1. Transportation Provisions for Transactions in Foreign
Trade
Sale of goods in the foreign market can be effected
under conditions of "CIF" and "FOB." ("CIF" -- A combination
of the first letters of the English words "Cost", "Insurance",
"Freight", indicating "the cost of the goods", "insurance",
"freight". "FOB" -- A combination of the initial letters of the
words of the English expression "Free On Board" -- literally
"free on board" -- which signifies the obligation of the seller to
load the goods on board the ship.)
The seller must deliver goods sold under conditions
of CIF to the port of destination stipulated by the sales agreement,
using his own funds and at his own expense. For this purpose,
depending on the size of the cargo which has been sold, the seller
charters a ship or part of a ship or sends the cargo to the port of
destination on a ship belonging to a shipping line (transportation
by a bill of lading). Under this arrangement the seller must insure
the cargo against damage in transit, must load it on the ship, and '
must pay all expenses involved in shipping and insurance (the cost'
of lading, the maritime shipping charges, and insurance fees).
Goods sold under conditions of FOB must be delivered
by the seller to the ship provided by the purchaser. In-this case. : ?
the obligation for concluding a contract for maritime trinsportatin
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r
rests on the purchaser Who pays all expenses for transporting
the cargo to the port of destination and for insuring the cargo
against damage in transit.
The terms of CIF and FOB have a number of varia-
tions, which are spelled out in the sales contract. However, the
basic obligations of the seller and purchaser do not change.
Insofar as both forms of bargaining between the parties
concerned (the purchaser and the seller) involve the subsequent
conclusion of a transportation contract on the part of one of the par-
ties concerned, the commercial contract usually includes the basic
stipulations for transportation. Through these stipulations, the
party charged with delivering or shipping out the cargo (the charterer
of the vessel) transfers to the second party a part of his future obli-
gations to the ship owner (the carrier).
The following transportation terms are included in the
sales contract under CIF agreements;
a) A specific length or period of time (quarter, month,
ten-day period), during which the seller must ship out the assigned
cargo on the vessel he has chartere.d;,
b) A procedure for determining the amount of ?the cargo
In order to compute payments(on the basis of data furnished in the
bill of lading or the results of weighing conducted at the port. of; desti-
nation)i
, -
?c) The speed with which the purchaser (dons,ighehymuit,
'
. - ,.?
guarantee unloading of the cargo from the ship at thi:point-o e_st rat-,
-f' d" i'
tion;
d) Procedure for apportioning the-e3iperiseslor,u
.t
the vessel at the port of destination.: 1;etween'Aege
signee;
22
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e) The imposition of a fine, paid by the consignee
for demurrage of the vessel in unloading the goods, or the
granting of a bonus received by the purchaser from the seller
for loading the vessel ahead of schedule.
The sales contracts in FOB transactions include
such transportation terms as:
a) the-length or period of time determined by the
calendar in which the purchaser must provide a ship at the
port where loading is to take place and in which the seller must
prepare the goods for loading;
b) the speed with which the seller must load the
vessel provided by the purchaser (the loading norm);
c) a procedure for determining the amount of cargo
in order to compute payments (on the basis of data furnished
in the bill of lading or results of weighing cnnducted at the
port of destination);
d) the imposition of a?fine, paid for demurrage of
the vessel in loading, or the granting of a bonus received by
the seller from the purchaser for completing loading operations
ahead of schedule.
A purchaser or seller, by taking advantage of
competition in the chartering market, may succeed in obtain-
ing a ship under terms giving the charterer a certain advantage
in comparison with the transportation terms of the sales contract.
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, 2 ?
2. The State Chartering Monopoly
The chartering of Soviet and foreign vessels for
shipments in the foreign trade field, like all foreign trade,
is a state monopoly in the USSR.
In practice, the chartering monopoly is in the
hands of the All-Union Association for Chartering Foreign
Shipping or Sovfrakht. The charter of Sovfrakht stipulates
that this has been instituted for carrying out, on monopolistic
principles, the operations connected with chartering foreign
shipping for Soviet cargo owners. Sovfrakht also handles the
chartering of Soviet vessels for transporting foreign charterers'
cargo between foreign ports, and between foreign ports and
those of the USSR. The concentration in the hands of one organi-
zation of the entire task of chartering shipping to meet the needs
of Soviet export-import associations make possible the planned
and efficient utilization of Soviet vessels for these hauls.
The chartering of Soviet maritime vessels for trans-
porting Soviet export-import cargo is handled by the Transporta-
tion Administration of the Ministry of Foreign Trade through the
Main Administration."for Traffic and Fleet Operation, and Ports
of the Ministry of the Maritime Fleet.
Until 1953 these functions', which included the prepa-
ration, jointly with the main administrations of the Ministry of
the Maritime Fleet, of calendar month schedules of loading of
ships,were fulfilled by Sovfrakht.
0?411111???
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At present, Sovfrakht's duties in regard to hauling
performed on Soviet vessels chartered by foreign trade asso-
ciations are limited to formulating voyage contracts for trans-
portation (charters) and to settling various operational problems.
In addition, Sovfrakhi, as an organization with broad contacts
with foreign chartering firms (brokers), can settle abroad,p.t
the behest of Soviet shipping companies, problems concerning
the fulfillment of voyage agreements (prompt and complete pre-
sentation of cargo for transportation, vessel-loading periods).
In transporting cargo in Soviet ships between foreign
ports, and also between Soviet and foreign ports in cases where
the charterers are foreign organizations, Sovfralcht, as before,
completely fulfills the functions of the chartering agent of Soviet
shipping companies, engaging particularly in attracting cargoes
and signing, on behalf of Soviet shipping companies; voyage
contracts with foreign charterers on terms previously agreed
upon with them.
Fi ally,' Sovfrakht supplies the Administration for C
Cargo and Commercial Operations of the Ministry of the Maritime
Fleet and the shipping companies with information concerning
international*shipping' competition and also about duties and cus-
tomary procedures in foreign ports.
For the services it extends to shipping enterprises
Sovfrakht*receives compensation on a commission basis, in the
form of a specified percentage of the total shipping charge for
voyages arranged through charters.
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The interrelations of the state maritime shipping
companies and Sovfrakht are regulated by Sovfrakht's agree-
ment with the Ministry of the Maritime Fleet.
3. Plan and Schedule of Foreign Shipments
The shipping of cargo in foreign trade, as in
intra:-sea and inter-sea cabotage, is conducted on the basis
of a plan.
The plan for foreign shipments is worked out
separately for each shipping company, route, and basic type
of cargo.
The approved plan for foreign shipments is effected
on the basis of calendar month schedules for loading of ships
and through special agreements concluded by the shippers (char-
terers of the vessels) with the maritime shipping companies.
In foreign shipments, as distinguished from ship-
ments in intra-sea cabotage, the carrier and the shipper must
formulate and agree upon monthly schedules of delivery of the
vessels.
The calendar schedules for loading of ships are
formulated by the Main Administration of Traffic, Fleet Opera-
tion, and Ports of the Ministry of the Maritime Fleet by agree-
ment with the Transportation Administration of the Ministry of
Foreign Trade; this is done monthly on the basis of the trans-
portation plan. Under this arrangement, the Transportation
Administration of the Ministry of Foreign Trade, acting as
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general charterer on behalf of all foreign trade associations
(Soyuzpromeksport, Eksportles, Eksportkhleb, Raznoeksport,
Raznoimport, Ma'shinoimport, etc.) collates their require-
ments for ships for foreign transportation.
The calendar schedule stipulates the periods for
preparing cargo for transportation within the monthly plan
and the delivery of ships to the ports of origin. The schedule
is the sole document establishing the limits of responsibility
which the shipping enterprise and the charterer have toward
one another for fulfilling the foreign transportation plan.
In order to prevent disputes from arising between
the parties concerned, the calendar schedule should be as
precise as possible (prederno chetkim). It must include the
following data for each ship: name of vessel, its deadweight
capacity, its space capacity for cargo, date of delivery of
vessel by shipping company to port of origin for loading (the
position of vessel), name of the shipper designated by plan,
identity -swat of the port of origin and port of destination, a
precise description of cargo, weight of the cargo in tons, and
its cubic measurem.ents. The schadule is signed by the Main
Administration of Traffic, Fleet Operation, and Ports of the
Ministry of the Maritime Fleet (on behalf of the shipping com-
panies) and by the Transportation Arirninistratio,n of the Ministry
of Foreign Trade (on behalf of the association chartering the
ves sels).
The position of the vessel can be designated in the
schedule by a fixed date or witli a five or ten-day interval between
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the initial and final calendar date of delivery of the vessel.
In cases where a fixed date is established in the schedule
for delivery of a ship for. loading, the Shipping company, in
accordance with "The Regulation on the Mutual Responsibility
of the Organs of Water Transport and Clients for Fulfillment
of the Transportation Plan in Foreign Transportation and Inter-
Sea Cabotage" has the right to deviate from the-dates set in
the schedule, within the following limits:
For ships of urgent (srochnyyl) lines - 24 hours.
For ships of regular lines - 48 hours.
For tramp steamers - four days.
A procedure has been workedcout through practice
in maritime foreign trals# transportation whereby the carrier
of bulk cargoes hauled in entire ships is authorized to deviate
by from five to ten percent in either direction from the quantity
of cargo stipulated by the monthly plan or by the transportation
agreement for each ship. The extent of the deviation allowed
is usually specified in the monthly schedules for delivery of
ships or in the trip transportation contracts (charters);
For example, if in the schedule or charter with
regard to the amount of cargo slated to be loaded on a vessel,
it says, "5000 plus or minus five percent", the carrier is en-
titled to accept for transportatiort 4750 tons without being hel4
materially responsible for underloading; or, to demand that
.t
5250 tons be presented for shipment, with the charterer (shipper)
bearing the material responsibility for failure."to meet thiS:demandi?-..
"
"
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The carrier can take advantage of this privilege
only if he declares his intention to the shipper to accept for
transportation a smaller or larger quantity of cargo before
loading operations begin (specifically, when the captain, hands
over the report on the readiness of the vessel for loading
operations).
This rule does not appear either in the Code of
Commercial Maritime Navigation or in the tariff manuals of
the maritime fleet, but is is recognized in practice by the
Maritime Arbitration Commission and by organizations of
the Ministry of Foreign Trade.
As was noted above, the jointly signed monthly
schedule for delivery of ships for loading must be fulfilled by
the maritime shipping companies and organizations of the
Ministry of Foreign Trade; they are held materially responsible
to each other for violating the schedule.
If after formulation of the schedule, it turns out
- that free tonnage and export-import cargo are available, the
shipping companies, through the Main Operating Administration
of the Ministry of the Maritime Fleet, can conclude stippleraen-
tary agreements with associations of the Ministry of Foreign
Trade concerning, transportation of cargo beyond the schedule
? and the plan. .
4. Rights, Obligations and Responsibility of _Parties
in FulfillMint of Transportation ia'
In carrying out foreign transportation, the inter-
?
oir!ions.
1
a
?
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03...????? ? .111..
relations and responsibilities of the shipping companies and
the organizations of the Ministry of Foreign Trade are regulated
by the Merchant Shipping Code USSR and by the "Regulation on
the Mutual Responsibility of the Organs of Water Transport and
its Clients for Fulfillment of the Transportation Plan in Foreign
Transportation and in Inter-Sea Cabotage." The "Regulation"
spells out and develops the various articles of the Merchant
Shipping Code USSR and is the basic document determining the
-1 procedure and limits of responsibility of the carrier and the
charterer in transporting foreign trade cargo.
A maritime shipping company has the right to replace
a vessel included in the schedule or designated for delivery for
loading outside of the schedule with another vessel, provided
that this vessel fully meets the transportation terms and will
assure the prompt delivery of the cargo. Similarly, the organi-
zation of the Ministry of Foreign Trade which is acting as shipper
has the right to replace one cargo with another within the limits
of the nomenclature of this organization, provided that this cargo
can be shipped onithe same vessel and that the ship will be loaded,
in terms of its deadweight capacity and its space capacity for
cargo, exactly as was stipulated in the schedule. The shipper
must inform the shipping _company of the substitution of cargo
no later than 48 hours before the ship is delivered: If the shipper
fails to observe these conditions, the shipping. company-can rii4e''c't
the cargo substitution and the cargo in this case is considered as
not having been delivered at all.
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.31.?????. ?????0?121
0,
4110.1111?11?? Alal.
Changes in points of origin or designation of
cargo stipulated by the schedule as well as visits to additional
- loading and unloading ports are permitted upon declaration of
t.,the -shipper with the permission of the chief of the shipping
company and with the payment of a fee or by agreement of the
parties concerned.
e. ?
The above-indicated deviations from the schedule
should be recorded in-an official document signed by both parties.
Other changes in the schedule are allowed only by agreement
between the Ministry of Foreign Trade and the Ministry of the
Maritime Fleet within the limits of the approved quarterly trans-
portation plan broken down into monthly subdivisions, provided
that these changes will not result in non-fulfillment of the plan
in tons and ton-miles.
For failure to observe the schedule agreed upon by
the parties concerned (apart from the deviations mentioned above),
the shipping company and the charterer bear mutual financial
responsibility.
For failure to provide shipping for the transporting
of cargo in accordance with the schedule, the shipping company
must pay the shipper a penalty amounting to 100 percent of the
traniportation charge for the entire quantityrof cargo whiCh?was,
not received. The shipping company also pays the- Shipper a
penalty Jai tardiness .in delivering a :vessel in-aiCoriiai*e-with:
? -
the -dates set by the schedule where such tardiness exceeds the
permissible deviationi.
-108-
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01s.
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"The Regulation on the Mutual Respbnsibility
Of the Organs of Water Transport and its Clients for Fulfill-
ment of the Transportation Plan in Foreign 'Transportation
and Inter-Sea Cabotage" 'stipulates that the shipping company
pays a penalty for tardiness in delivering a ship for loading
according to the daily penalty rates established by agreement
of the parties concerned for demurrage of vessels. A special
rate scale of penalties for tardiness of delivery of vessels
has been introduced by a special agreement between the
Ministry of the Maritime Fleet and the Ministry of Foreign
Trade. The rates of the penalty, paid according to this scale
by the shipping company to the charterer for tardiness in
deliverying a ship as called for by the schedule, are for the
first five days equal to the rates of the penalty paid by the
charterer to the shipping company for the first five days of
demurrage beyond the established norms of a vessel undergoing
loading operations. If the delivery of the vessel is delayed
more than five days beyond the date set by the schedule, the
-shipper (the charterer) can refuse to use the ship and can exact
from the shipping company a penalty amounting to 100 percent
of the shipping charge including the penalty for the five-day
tardiness of the vessel; or else the shipper can announce to
the shipping company his intention to use the ship.a.t.reduced
chs.Ftering rates, as provided by the contract.. InAhe event
that there is no concrete stipulation in the transportation-contract
regarding the extent of the reduction in the charter .rates ?which
can be,applied by the charterer when,tardiness ?f.'Orip Aeliyeiy '
?
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?
exceeds five days, the charterer can reduce the shipping
. charge rate only if within the five-day tardiness period
he reaches a special agreement with the shipping company
regarding the rate of reduction.
"The Regulation on the Mutual 'Responsibility
of the Organs of Water' Transport and its Clients for Fulfill-
ment of the Transportation Plan in Foreign Transportation
and in Inter-Sea Cabotage" stipulates that for violation of
cargo delivery deadlines the shipping company pays the
charterers a penalty amounting to one percent of the shipping
charge for each daynaeyond the deadline, but not in excess of
30 percent of the shipping charge. This penaliy is paid only
II the delivery dates are stipulated by the transportation con-
tract or the 'transportation rules. At present this provision
is not enforced inasmuCh as the rules and contracts (charters)
now in effeat do not specify delivery dates for cargoes shipped
overseas.
. For failure to present cargo for shipment as sti-
pulated by the schedule or for presenting cargo in a Smaller
quantity the shipper (charterer) pays the shipping company a
penalty amounting to 100 percent of the shipping charge for
the'unused deadweight capacity or cargo space aapacity of the
vessel. " This means that the charterer pays the shipping
company for the part of the cargo which was not loaded in accor-
-dance with the schedule even if the cargo space capacity of the
vessel is utilized, for it is held that if the charterer knows the
cargo space capacity of the vessel in advance, the cargo
,d.???=,
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designated by the schedule may possibly fail to be placed in
the vessel in qualitative packing in the holds solely because
of the presentation for shipment of a bulkier cargo than in-
tended according to the schedule, where usually the volume
of the cargo is not indicated.
If the cargo is presented for shipment in improper
packing or with imprecise marking, and the shipper has re-
fused to make the necessary corrections in time to assure
prOxilpt loading, this cargo is considered as not having been
presented.
For demurrage of vessels because of delayed pre-
sentation of cargo or because of delay in cargo operations per-
formed with the shipper's facilities, or for other causes for
which the shipper is responsible, the shipper pays the shipping
company a,penalty in an amount established by agreenaent. If
the chartering contract or another contract does not stipulate
the amount of the demurrage penalty, then the penalty is deter-
mined according to norms "usually adopted in simifar ports"
'(Article 90, Merchant Shipping Code., hereafter, "MSC").
? Consequently, in this case the penalty fpr,slemurrage
of vessels in Soviet ports must be levied according, to the rules
in effect (See Tariff 'Manual. No. 1-M1 Paragraph 62) _while in
foreign ports "the payment for, demurrage is determinedby.,the
expenses for maintain the vessel and the crew,. " (Article:90, .MSC):-
- . ?
At present an agreement betwemthe Ministry of
the Maritime Fleet and the Ministry of Foreign Trade, is in ?
?
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effect, whereby the penalty for'demurra:ge of Soviet vessels
in Soviet and foreign ports is set at the rate of'.56 kopecks
per Clay per gross registered ton of the space capacity of
the vessel.
5. Chartering of Vessels by Foreign Charterers
In addition to to :transporting export and import
cargo for associations of the Ministry of Foreign Trade USSR,
Soviet vessels transport cargo for foreign charterers. This
occurs in the selling of export cargo under FOB terms, that
is, when the Soviet export organization is obliged only to
deliver the cargo to the 'Vessel, but with the foreign purchaser
having chartered a Soviet vessel to deliver the cargo to the
destination point. Soviet vessels also can transport cargo for
foreign charterers when, after deliverying Soviet export cargo
to a foreign port, the vessels are unable to obtain a return
cargo intended for shipment to a Soviet port. Under these
circumstances Soviet shipping companies resort tO having
their own vessels chartered for transporting' foreign Cargo to
some foreign port located clOse to Soviet waters'.
Possessing regular information about. the avails:I.:AMY
of free tonnage for foreign deliveries and about sales of export
cargoes by-export-import. organizations of the ,Ministry of Foreign -
Trade USSR under FOB terms,. Sovfrakht upon agreement With
the Ministry of the Maritime Fleet establiti'hes .contactrWith carigo.
purchasers through its chartering agents (brokersCin order-A?
'
, .
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have Soviet vessels chartered to transport such cargo. This
is carried out by transmitting offers to the broker on behalf
of the shipowner for the chartering of specified vessels or
by soliciting such an offer, through brokers, from the cargo
owner.
Usually indicated in the offer are the deadweight
capacity of the vessel, the vessel's readiness for loading, the.
description of the cargo, the ports of loading and unloading,
conditions of performance and the norms of loading operations,
the chartering rate, form of the charter, etc. The identification
of the vessel is often mentioned only at the end of negotiations
concerning the chartering, or even after a vessel has been char-
tered.
In chartering, definite and conditional offers are
used. Definite offers bind the parties for a specified length of
time. If such an offer is accepted without change within the
time limit set for it, the party which made the offer is bound
by it and is not entitled to deviate from the wording of the
chartering contract. Responding to a definite offer later than
the offer's deadline or changing even one of the conditions of
the offer frees the offering party from obligation.
In practice the first offer is rarely accepted right
away. Usually the charterer introduces Changes in the ship-
owner's proposal or replies to the shipowner's propsal with a
? counter-proposal. Acceptance by the shipowner of the charterer''s
counter-proposal before the deadline and without change obligates ?
?
?
-In-
?
01.Rimmt
? MONA
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both parties, and the transaction is considered closed.,Fre-
quently the parties exchange a number of proposals and
counter-proposals until all conditions are agreed upon.
Conditional 'offers are used when the shipowner
is conducting negotiations with several charterers simultan-
eously or when the charterer is simultaneously conducting
negotiations to charter another vessel for his cargo. The
offer is made with the proviso that it will take effect only
if at the moment that a positive reply has been received, the
ship tstill has not been chartered or the charterer has not
yet chartered another vessel for the given cargo. Conditional
offers are frequently anco.untered in practice, because ship-
owners, in order to hasten the chartering of their vessels and
secure thermost profitable transportation terms, often conduct
simultaneous negotiations with several charterers, and char-
ters often act in a like manner.
Preliminary negotiations usually precede a definite
or conditional offer.
Charterers often resort to so-called quotations,
that is, they declare their transportation requirements on an
exchange or announce them to Shipowners through chartering
agents (Brokers) and through, periodic bulletins.
If a Soviet vessel is carrying cargo to a foreign
port but does not have any return cargo, Soyfrakhi acquaints
itself with the quotations and tries to find suitable Fargo..
1;s1
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If among the cargoes which are quoted on the chartering
market, there is none to be taken on along the route, Sovfrakht
informs its agents of the availability of free tonnage and in-
cludes the vessel in its charter bulletins. Sometimes it is
necessary to charter a vessel to transport different lots of
cargo for different sectors of the route. For example, if a
vessel is at. some point along the southern part of the Atlantic
coast of North America and is to return to the Black Sea, then
it can be chartered to carry sugar from Cuba: to some European
port and then to haul coal from England to one of the Mediter-
ranean ports.
The chartering transaction is legalized by means
of a chartering contract (charter-party or charter). The charter
is drawn up by Sovfrakht or its foreign charter agent and is
signed by the charterer and the,vessel owner.
In the majority of cases, because of the absence of
sufficient time to send the charter to be signed to the parties
directly concerned, Sovfrakht receives full power to sign the,
charter in the name of the foreign charterer.? If the charter is
drawn up by a foreign chartering agent, then in urgent cases ,the
agent signs the charter in the nameof Sovfrakht, which has
been invested with full power by the-Soviet ship owner. Sovfrakht
. and the foreign brokers, in.signing charters on behalf of any '
particular party, always make the reservation that they,are act-
? ing only as agents. This signifies that they do not*beir materiii
responsibility for the actions and omissions of the parties con
,
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cerned and cannot be involved as defendants or co-defendants
in disputes between the parties over the chartering contract.
As a rule, two originals of the charter are drawn
up, one being given to the ship owner, the other to the char-
terer. Furthermore, the required number of copies are made
for the captain of the ship, the agent of the vessel in the loading
port, the chartering agents, the shipper of the cargo, etc.
Sometimes the Charter is made up in only one copy, which
remains with the broker, with certified copies or photostats
being distributed to the parties concerned.
6. Types of Chartering
Shipping cargo in overseas transportation is conducted
according to the charter-party and the bill of lading. (A charter-
party is an agreement for chartering a vessel for transporting
cargo or passengers. The name "charter-party" is derived from
the Italian words "carta partita, " that is, a piece of paper torn
in two. During the Middle Ages the captain of a vessel gave the
cargo shipper a document which served as an acknowledgment of
receipt of the cargo to be transported and as a pledge to delkier
the latter, at the point of destination, to the proper purchaser.
This document was torn into two parts, tone part remaining with
'the:captain, the other being sent to the carp consignee, who
produced it to prove that he (the consignee) was the lawful owner
of the cargo. Surrender of the second half of the document to
the -captain .served as proof that the cargo, had been delivered
according to the stipulations of the transportation. agreement.)
_
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Chartering according to charter-parties is
usually carried out on one voyage from one or several ports
of lading to one or several ports of unloading.
In certain cases, in concluding the transportation
contract the charterer is granted the right to choose the ports
of loading and unloading according to his own judgment from
a number of ports located within the boundaries of a specified
region (most often, of a country), designated in the charter-
party. Sometimes the charterer reserves the right to conduct
unloading in one or several ports not merely in one country,
but along a specified section of coastline including several
countries. In cases where, according to the charter-party,
the charterer is entitled to direct the vessel for loading or
unloading to one or several listed ports, the rate of the shipping
charge is set for a so-called base port, and for other ports
specified additions to, or dediittions from, the shipping charge
are applied.
The chartering of veisels with, a wide range. of
ports of loading ad unloading ("broad charter") was wide-
spread before the second world war in transporting timber,
grain, coal, and ore from Soviet ports. At present, chartering
by "broad charter" is a comparatively rare .practice. However,
even today, in exporting grain from Black Sea ports for foreign
buyers, the charterer has the right to have the ship loaded at
any of .the Black Sea ports, with.accoupt being taken of the
size ind draft of the ship. In chartering Soviet vessels for
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shipments between foreign ports (BFP), now, too, it is some-
times necessary.to agree upon a comparatively broad range
of ports for unloading. This is particularly true in trans-
porting coal to Italy, when the port of unloading is designated
in the following way: "port in western Italy" or "an Italian
port, to be named upon passing through Gibraltar."
A .chartering _contract can be concluded for two,
three, or more sqbsequent voyages. Agreements for subse-
quent voyages can be concluded with the proviso that the ship,
after completing unloading operations, immediately return to
the port of loading to complete the next voyage; or such agree-
ments can be concluded with the proviso that the ship has the
right to transport other cargo for other charterers between
two successive voyages.
Sometimes in cases where a large quantity of cargo
is to be transported, the practice of concluding general agree-
ments is utilized; under these agreements the charterer pledges
to turn over an agree.d-upon quantity of specified cargo, which
the shipowner ,pledges to transport within a certain length of
'time between specified ports. In concluding general agreements,
the name'of the ship usually is not listed and the shipowner his
the right to,perform the hauling on any ship belonging to him or ?
t? another shipowner, as long as the ship, in its construction
and technical cOnditicsns, meets the requirements of the given
shipment.
One of the methods of chartering is chartering by
time (time charter), whereby' the shipowner provides the charterer
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with a vessel not for a specified voyage, but for a stipulated
period of time in order to transport any cargo, except inflamm-
ables, explosives and other dangerous goods.
Shipments can be carried out according to bills
of lading, without making a charter-party contract. In this
case the legal relationships between carrier and cargo owner
arc defined by the terms set forth in the bill of lading.
7. The Chartering Contract
The chartering contract stipulating that an entire
ship, a part of a ship, or specified areas of a ship be provided
for transporting cargo determines the relations and obligations
of the parties concerned.
In foreign trade transportation, standard charter-
parties are used as a reule, depending on the type of. cargo and
the shipping route. In addition to specific provisions, standard
charter-parties contain precise basic conditions common to all
charter -partie s:
In the charter-party the basic obligations of the
parties concerned are set forth in detail. The basic obligations
of the carrier in a contract for maritime transportation are
the furnishing of the, vessel, guarantee of the safe transportation
of, the cargo to the port of deitination, and surrender of the
'cargo to the' consignee. Turning over of the .cargo, to be trans-
:Poked,' payment of the freight charge, and receipt ?Utile trans-
potted cargo at the point of destination constitute the basic
?
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obligations of the charterer.
The introductory part of the charter contains the
names of the parties who have concluded the chartering
contract (that is, the names of the shipowner and the char-
terer), the identity of the vessel, its characteristics, etc.
In certain cases, the ship owner reserves in advance, in the
Chartering contract, the right to replace the designated.
vessel with a similar one (substitute).
The vessel's characteristics: The vessel's
characteristics are an essential part of the chartering contract.
Here are listed the country under whose flag the vessel is sail-
lug, the class of the Register, the ship's date of construction,
its deadweight capacity, its cargo space area, etc. If the ship,
is not sailing under the flag designated by the transportation
contract, this is a contract violation by the shipowner. The
flag of the vessel is of importance in insuring cargo and in pay-
ment of port duties if the charterer has assumed these obliga-
tions.. The flag under which a vessel "salls.may have particular
significance during war time.
If, in signing the transportation contract, -aedefinite
- class of ship was stipulated, all consequences for violating this
obligation fall upon the shipowner.- Improper designation of the
class of ship in the Charter may give the charterer. grounds for
breaking the contract, since the class of ship plays a vital part
in the insuring of cargo. Furthermore, in,sales agreements
and commercial contracts, the supplier may be required to
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charter a vessel of a specified class; in this case, the
loading of cargo on a ship of a different class can give the
purchaser the right to nullify the agreement and under
' certain conditions even to hold the supplier responsible
for losses inCurred for this reason. In the event of damage,
' the consignee may attempt to ascribe this to the fact that
the dais of the ship did not correspond to that called for in
the sales contract, and he can try to hold the supplier (char-
terer) responsible for all losses resulting from damage.
At present in chartering Soviet vessels to trans-
port cargo abroad, it is usually indicated in the charters
that a vessel is to have a class or certification of the Register
USSR of the right to sail.
Every charter contains a provision concerning
the seaworthiness of the vessel. The concept of seaworthiness
does not coincide with the concept of class, as a ship can be
seaworthy without having the class of the Register.
The seaworthiness of a vessel assumes that the
vessel is sturdy, water-tight, properly equipped, Supplied
and manned; it assumes also that the vessel's cargo areas
are in good condition to ensure the safety of a given cargo
during transportation. Putting the vessel into condition suit-
able for navigation, that is, assuring its seaworthiness, is
one of the basic obligations of the carrier; if this is not ful-
filled, the carrier bears the responsibility for spoilage of:
loss ;A' cargo in transit.
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In the charter the registered tonnage - gross
and net - of the vessel is indicated. The amount of the
registered tonnage is important for computing the various
port duties. The charter also contains the deadweight
capacity.in tons and the cargo space area in cubic meters
or cubic feet, standards (for shipping timber), etc.
Quantity and description of cargo: The listing
in the charter-party of the effective deadweight capacity or
cargo space area of the vessel defines, on the one hand,
the obligation of the shipowner to accept for shipment a
specified quantity of cargo or to provide for such shipment
a specified volume of vessel's cargo space area and, on
the other, it determines the obligation of the shipper or
charterer to present for shipping or loading aboard the
vessel a specified quantity of cargo and to pay the shipping
charge for it.
The pure or effective deadweight capacity of the
vessel cannot always be precisely determined, for it depends
on the presence aboard ship of fuel, Tresh water, and equip-
ment an on the specific gravity and packing of the cargo;
thus charters usully give approximations of the quantity of
cargo. The weight of the cargo which is .to be accepted for
shipment is determined either by specifying a maximum and
a minimum (for example, minimum - 4500 tons; maximum -
5500 tons), or by establishing a permissible percentage of
deviation from the stipulated quantity of cargo (for exanaple,
5000 plus or minus ten percent).
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As has already been noted, the quantity of cargo
actually accepted for shipment within the limits of the deviations
permitted by the contract is determined by the shipowner; that
? is the charterer_or shipper must present for shipment as much
cargo as is required by the carrier to fulfill the contract.- The
carrier is not obligated to accept for shipment more than the
minimum quantity of cargo stipulated in the charter, but the
charterer upon the demand of the carrier must furnish the maxi-
mum amount of cargo indicated in the transportation contract.
The carrier is held accountable to the charterer if the vessel
cannot lake on the minimum amount of cargo designated by the
charter-party.
The description of the cargo to be transported is one
of the most important elements of the chartering contract. It
permits an advance estimate of the approximate volume of cargo,
a determination of the amount of the shipping charges, the possi-
bility of transporting the given cargo *jointly with other cargoes,
etc. Thus, the description of the cargo in the contract should
be extremely precise.
There are cases in which the charterer reserves in
the charter the right of partial replacement of one cargo' with
another, preserving the basic -rate for the ?shipping charge or
Making a specified supplementary payMent.. Thus, for -example,
in the chartering of vessels for transporting grain, tht practice
of the charterer's reserving the right of partially replacing.
heavy grain (wheat, rye, barley) with light' grain? (oats) or lkith-
, seeds of olive crops is encountered. In the chartering of vessels
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for transporting coal, the charterer sometimes reserves the
right to ship instead of coal a certain quantity of coke or
briquettes. The charterer's right to substitute one cargo for
another is called the "cargo option."
In shipping Soviet foreign trade cargoes, the right,
established in the voyage contract, of replacing one cargo
with another should not go beyond the framework set up by the
regulation on the mutual responsibility of water transport and
its clients.
Sometimes the charterer is given the right to pre-
sent for shipment any cargo permitted by law, which the carrier
is obliged to accept. In this case, the amount of cargo, as a
rule, is not indicated; but in the transportatirn contract it is
stipulated that the vessel should transport cargo which does
not exceed its effective deadweight capacity, or that the carrier
must provide for transportation cargo space df a specified volume.
In the practice of Soviet shipping companies, this
provision is applied only in the shipping of foreign charterers'
goods.
Date of delivery of a vessel: The charter-party
usually indicates the location of the vessel at the moment the
charter is concluded or the presumed,time in which the ship
will be ready for loading (in Which the ship will depart for the
port of loading). The period during which the ship is to arrive
at the port of loading (position of ship) aft indicated separately.
The time interval between the initial and terminal dates-of this
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periodis Usually ten to fifteen days. The charterer is under
no Obligation to begin loading before the-initial date (lay. days),
unless otherwise stipulated in the contract. If, at the terminal
date of the period indicated in the charter for delivery of the
vessel (cancelling) the ship is not ready for loading, the char-
terer is entitled to break the transportation contract, regard-
less of the circumstances causing the delay.
In chartering vessels for Soviet foreign trade ship-
ments; the periods indicated in the voyage contracts for delivery
of vessels and the responsibility of the carrier to live up to
these periods, are determined by the rules provided in The
Regulation on the ?Mutual Responsibilities of the Organs of Water
Transport and its Clients for Fulfillment of the Transportation
Plan in Foreign Transportation and in Inter-Sea Cabotage."
Ports of Loading and Unloading: The ports of loading
and unloading are designated in the chartering contract and it is
stipulated that the vessel must come as close to the port as it
possibly can without endangering itself, remaining constantly
afloat. Sometimes, instead of naming the port, the charter
stipulates that the ship should load or unload at the direction of
the charterer in one or several safe ports located within the
limits of a specified maritime basin, region?or,/ district (for
example, one or two safe ports on the Black Sea or the Sea of
'Azov, one or several ports on the western, or southern coast
of England, etc.). The stipulation regarding the safety of the
port indicates that the safety of the ship should be-assured in
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entering the port, while loading operations are being carried
out, and in leaving the port.
In the practice of transporting Soviet foreign
trade cargo, broad geographical options are employed com-
paratively rarely.
The name of the port of unloading should be made
de-finite before loading begins or in the ,signing of the bills of
lading. In individual cases the right of the charterer to issue
an order regarding a port of unloading on the -ship's route is
designated in the charter contracts.
If there are several ports of loading and unloading,
they should be located in geographic succession (geographic
rotation), that is, the charterer has no right to -require a
vessel to return for loading or unloading to a port which it has
already passed.
Notification of Readiness of Vessel: In order to
give the shipper the opportunity to prepare cargo for loading
in prompt fashion, the shipowner must notify the charterer
(the Shipper) in advance of,the projected arrival of the vessel
at the port of loading. This obliga:tion is formulated in various
ways. in vations charters and is spelled Out .when the, charters
are signed. Thus, if loading is to take place in.the Black Sea,
the ves,sel usually gives notification of its forthcoming arrival
as it passes Istanbul. In chartering a vessel for loading timber
. ?
?at White Sea ports, the charterer !Maid be. infOrnied,?Tiotleiis
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than ten days before the arrival of the ship.
The captain must also notify the charterer of
the actual readiness of the ship for loading or-unloading.
Such notification (notice) is transmitted by the captain when
the vessel is completely ready for loading or unloading,
that is, when customs formalities are completed (if the ship
has arrived Brom, abroad) and when the vessel has prepared
all its cargo space to receive the designated cargo. In the
case of unloading, this notice is transmitted when the vessel
is ready to turn over the cargo in accordance with the trans-
portation contract.
Conditions for loading and unloading: Depending
on the specified provisions of the transportation contract, the
cargo to be transported is to be delivered up either alongside
the ship or in the hold of the vessel without packing or in the
hold of the vessel with packing at the expense of the shipper.
The obligations of the parties, depending on the
provisions in 'the transportation contract, can also 'vary. As a
rule, the shipowner delivers up the cargo _on shore alongside
the vessel, that is, the Unloading of cargo from the holds, from
the decks, or from other cargo areas is conducted by the carrier.
In certain cases, the obligations of the carrier are limited to
delivery of the cargo from the cargo storage areas; the consignee
? ?
must then take care of the unloading of the cargo onto shore.
For this purpose, 'the ship um:tally places its loading faciliiies
it the' disposal of the consignee and sometimes also workers'to
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service the loading machinery (winch operators).
In the shipping of foreign trade cargo in Soviet
'1"-- Vessels, the shipping company's obligations usually include
only the payment for, or conducting of stevedore (hold)
? operations when loading and unloading in foreign ports.
If, because of shallowness, a vessel cannot come
up to the wharf or if in the port of loading (or unloading),
loa.ding operations are conducted in a roadstead and the
cargo therefore is brought to the vessel (or delivered to shore)
in barges, the cost of the barge service is charged to the
charterer.
In the relations between the organizations of the
Ministry of Foreign Trade (the charterers) and Soviet mari-
time shipping companies, there is a rule whereby the cost for
partial loading or unloading of a vessel by means of barges
upon its entry into, or departure from, a port is borne by
the shipping company only if in the schedule of delivery of
ships the identity of the ports of loading or unloading is pre-
cisely indicated, but in the charter there is no provision for
charging expenditures for possible barge service to the char-
terer.
This ?stems logically from the premise that if' the
shipowner, who is informed about the draft of the ship and.
the depth of .the designated ports, had not stipulated in the
charter the obligation of the charterer to pay for barge ser-
vices, then the ,unloading of cargo before the ship enters port
or the loading of cargo after the ship's departure from port
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could be caused only by actions, on the part of the shipowner
(for example, the replacing of the intended ship with another
of greater draft, etc.).
Regardless of the conditions of loading or unloading,
the overall responsibility for supervising loading operations
and the distribution of. cargo aboard the ship is assigned to
the captain. The plan for *distributing cargo aboard ship (cargo
plan), drawn up before loading begins by the captian of the
vessel or by the shipper in agreement with the captain, must
provide for' the seaworthiness of the vessel, the safety of the
cargo, and the facility ()fits unloading, particularly when un-
loading is to take place in several ports. The possibility of
carrying cargo, on deck must be specially stipulated in the
chartering contract or confirmed by written consent of the
shipper (Art. 88, MSC). In giving consent to have cargo carried
on deck, the shipper assumes responsibility for the consequen-
ces of this method of transportation.
Periods and norms for loading and unloading: The
charter usually indicates a specified period of time alloted to the
charterer for loading operations or else sets the daily norm for
loading and unloading.
In the absence in the traniportatinn contract of a
special provision concerning norms a loading and Unloading,
,
norms agreed upon by the Ministry of the Maritime Fleet and
the Ministry of Foreign Trade are used.
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If in the agreement between the Ministry of the
Maritime Fleet and the Ministry of Foreign Trade there are
no fixed loading and unloading norms for any particular cargo,
the norms established by the customs of the appropriate
foreign port are used in the accounts between the charterer
organizations and the shipping companies. However, since,
as a rule, there are no definite norms of loading and unloading,
in ports of capitalist countries, references to port practices
have very rarely been used in recent years. The parties some-
times stipulate in the contract that. cargo, when being loaded,
should be turned over to the ship as promptly as the ship can
receive it and that in the port of unloading the cargo should be
received by the consignee as quickly as the ship can turn it
over.
If the charterer of a Soviet vessel is a Soviet foreign
trade organization, the norm stipulated in the charter for
loading and unloading in a foreign port is applied in the accounts
between the shipping company and the charterer and is binding
on the parties in only two cases:
1) When in the special agreement between the Ministry
of the Maritime Fleet and the Ministry of Foreign Trade there
is no fixed norm of loading and unloading a given cargo in a
given port;
2) When the norm stipulated in the voyage contract
(this norm usually coincides with the norm provided for by the
sales contract) is higher than the norm established by mutual
,
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agreement between the Ministry of the Maritime Fleet
and the Ministry of Foreign Trade.
In all other cases, regardless of the contents
of the charter, the accounts between the shipping companies
s,?
and the organizations of the Ministry of Foreign Trade are
based on the norms established by the agreement between
the Ministry of Foreign Trade and the Ministry of the Maritn-,
time Fleet.
If a Soviet vessel is chartered by a foreign-firm,
specific loading and unloading norms are usually indicated
in the voyage contracts. However, regardless of the size
of this norm, in Soviet ports norms established for Soviet
vessels by the Ministry of the Maritime rleet are applied;
in this case, the accounts for harboring the vessels in Soviet
ports are settled by the shipping companies not with the foreign
charterers but with the Soviet organization which actually per-
forms the loading-and unloading operations (the port, the con-
Signet' or the shipper of the cargo).
In contracts for foreign transportation, not only
are the loading and unloading norms indicated, as a rule, but
the procedure for computing the time devoted-to loading opera-
tions is also shown (standing time). Various rules for com-
puting standing time (staliynoye vremya) are applied, depending
on the type of cargo and conditions in.the ports (obstanovki
portakh).. The most widely. employed system in the ports of
capitalist countries is one whereby Sundays and holidays, as
/31
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well as day's when loading operations cannot be conducted
because of 'weather conditions, are excluded from the time
of loading and unloading. In a number of ports Saturdays
and days preceding holidays are counted as three-fourths
or half of a working day. In certain instan.ces, the time is
computed on an uninterrupted basis, regardless of Sundays,
holidays, and the weather*.
In the practice of Soviet foreign trade transpor-
tation, in the accounts between the shipping companies and
the organizations of the Ministry of Foreign trade (the
charterers) Sundays and holidays are excluded from standing
time only when operations on the vessel actually were not
carried out on these days. In the hiajority of the ports of
the people's democracies Sundays and holidays are bot excluded
from standing time regardless of whether or not operations
were conducted on these days.
In Soviet ports where work is carried on continuously,
including Sundays and holidays, standing time for Soviet vessels
is computed in accordance with ship-hour norms of the Ministry
of the Maritime Fleet. For foreign vessels, computation of
standing time is made according to the terms of the charter-
party.
' For delaying vessels undergoing loading operations
beyond the length of time established by the chartering contract
the charterer must pay a penalty (demurrage), the amount of
which is stipulated by the contract; for-pre-deadiine completion
?
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of loading or unloading, the shipowner pays the charterer
a bonus (dispatch), the amount of which is usually computed
on the basis of one1121.1 the rate of the penalty..
As a rule, the time for loading and unloading is
computed separately. However, in certain cases the contract
includes a provision merging the time for loading and unload-
ing; in this case, the computation of standing time is made
according to the total results for loading and unloading in
the ports of origin and destination (reversible).
Charters usually designate the time limit for
demurrage of a vessel byond the established norms (kontrs-
taliya). The delay of a vessel beyond the demurrage time
limits are paid for by the charterer either according to in-
creased rates established in the charter-party or in the
amount of the actual losses sustained by the shipowner for
this reason. At the expiration of the cnntractually estab-
lished demurrage period, the shipowner can also send his
ship to sea not fully loaded and can charge the charterer
the shipping charge for the unloaded part of the cargo.
Delivery _periods: Standard charter-parties
do not designate specified periods for delivering, a.rgp; how-
ever, every charter-party ordinarily includes a provision to
the effect that a ship should proceed to the port of destination
"With all possible speed. ?'
In the charter the vessel reserves the right .to ?
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deviate from a direct course in order to save human 1iv??
Olsfr.
?
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ships, and cargo at sea and also to stop off at ports on the
?
way to take on fuel and food and for other necessities.
Deviation from the designated route must be occasioned
by genuine necessity connected with the trip in question.
Groundless delay in the voyage or deviation from the course
provides grounds for holding the carrier responsible for
losses thus incurred.
The shipping charge: If the amount of the
shipping charge is not designated by,tariffs, it is established
by agreement between the parties and is indicated in the
chartering contract.
As a rule, the shipping charge is established in
terms of a unit of weight or volume, or a conventional unit
(ton of actual or conventional weight, festmeter (?) or cubic
warehouse meter (skladochnyy kubometr), cubic sazhen',
standard of timber, measured ton, and cubic meter of cargo
space area of the vessel, etc.), and is computed as a pro-.
portion of the quantity of cargo transported. In shipping
valuable items, (such as gold, silver, platinum, precious
stones, expensive furs) on cargo or cargo-passenger ships
foreign transportation, the shipping charge is computed as
a. percentage of the value of the cargo.
If the charterer has not provided for the loading
On board ship of all the cargodesignated in the transportation
contract or has completely failedto present the cargo for
shipMent, he must pay the carrier the full amount,of the
?
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shipping charge for the unloaded or unpresented quantity of
cargo (dead freight).
Sometimes the chartering contract lists the total
amount of the shipping charge for the entire vessel or for a
portion of the cargo space areas for a given voyage (lump sum).
This method is used in case's where the type of cargo has not
been established in advance and the charterer is given the
right, according to the contract, to present any legally pexmiss-
ible cargo (exclusive of dangerous items). In the practice of
overseas transportation aboard Soviet vessels this clause is
applied only in transporting foreign charterers' cargo.
Usually all port duties, tolls for passage through
canals, etc. are included inthe shipping charge and are paid
by the shipowner. However, exceptions to the general rule
are made in certain cases - which must be stipulated in the
charters - when the responsibilities for payment of port duties
rests upon the charterer. For example, in shipping timber
from the White Sea ("Russ vud" standard charter-party), all
expenses in the port of loading are borne by the charterer
(shipper), and the shipowner recompenses the charterer with
a specified amount, stipulated in the transportation contract,
per unit of cargo to cover port expenses, including the cost
of loading. This procedure may be applied in Soviet Comnier-
-
cial navigation in cases where the charterers are foreign
,
The shipping charge (freight) speCified'in'the Char-,
. _
tering contract is, in most cases, paid at start-of s pment.
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Sometimes the shipping charge is paid after the cargo has
been delivered. In the latter instance the shipowner is
entitled to receive from the chatterer an advance to cover
costs in the port of loading; the amount orlhe advance is
not to exceed one third. of the total shipping charge. Most
standard charter-parties provide that the shipciwaer must
pay, the charterer two percent of the amount of the shipping
charge which lias been advanced for insuring the freight and
other expenses.
As a rule, this system for computing shipping
charges is not applied in the current practice of transportations
aboard Soviet vessels. In all cases where the charterer is
an organization of the Ministry, of Foreign Trade, the charter
includes a stipulation that the shipping charge is paid in accor-
dance with the agreement. This means that payment of the
entire shipping charge is made when,the goods are shipped.
In individual cases where goods are shipped be-
tween foreign ports, payment of the freight is made oily afier
the amount of cargo delivered has been checked by the con-
signee. Such a stipulation in charters is found particularly
in shipments of coal from countries of the ?European contInent
to Italy.
, According to the standard bill of lading,form used
in foreign shipping (Form I(5-55), the shipping charge is
be paid when the goods are shipped, but if the fkeig1t was not ?
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"
paid when, the goods were shipped, then it is to be paid
before the cargo is turned over to the consignee. In this
case, the carrier is entitled to receive the freight charge
even if the cargo is not delivered to the place of destination
? as a result of the loss of the ship. Such a condition (the
obligation to Pay the freight charge in the event of the loss
of the ship) is often also included in the charter-party.?
If the freight is subject to payment in the port
of. destination after the cargo has been delivered, the char-
tering contract reserves the shipowner the right to refuse
to turn over the cargo to the consignee before collecting
the freight charge, the penalty for demurrage of the vessel
and dead freight - that is, the right to retain the cargo in
order to secure payment of the sums due the shipowner
for carrying the cargo (security right - zalogovoye pravo - ).
The security right of the shipowner is a very essential con-
dition of shipment, since most charter-parties stipulate that
the charterer's' respontibilities with respect to the charter
end with the conclusion of loading.
Other conditions of chartering: In a maritime
transportation: contract, a.place for prepari#g an adjustMexii
(aspasha) for general damage is usually stipulated by a
special provision.( Dispasha - the computation for diSfribu"-
ting the amounts of general damage among vessel, cargo, anci
?
freight - is prepared by a special individual - the damage
-adjustor. In the USSR damage adjustors are loca:ted, in the
-
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'
-
All-union Chamber of Commerce in Moscow.)
Since legislation regarding problems of general
damage vary from country to country, in the' practice of
commercial maritime navigation, charters usually make refer-
ence to the so-called York-Antwerp rules of 1924. These rules
basically coincide With the provisions of Chapter VII of the
Merchant Shipping Code USSR on general and particular damage.
In 1949 the wording of the York-Antwerp rules was changed
somewhat; more precise rules went into effect on 1 January,
1950. The 1950 rules, like the 1924 rules, do not have manda-
tory force and are adopted by consent between the parties con-
cerned.
In chartering Soviet vessels for transporting im-
port and export cargo, it is usually stipulated that adjustment
of general damage is to be done in Moscow. In shipping cargo
between foreign ports (BFIi) the place for preparing the adjust-
ment is either the port of destination or another point agreed
upon by the parties concerned.
In order to assure that the expenses and losses
resulting from general ,damage will be satisfied, the shipowner
is entitled to refuse to turn over cargo until the consignee has
furnished the proper guarantees i' In practice the gua. rantee
is given by the cargo owner in the form of a damage bond.
'According- to the damage bond, the owner of the Catgo-pledges
hiniself to declare the value of the goods belonging tO him,
guarantee payment of the share of the damage 'fee viliTch is due
-
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from the cargo according to the adjustment and submit
to aU lawful decisions of the damage adjustor. In cases
where the shipowner has grounds for doubting the ability
of a foreign cargo owner to pay, he demands that a deposit
be made or that an appropriate bank guarantee be:furnished.
Disputes betweenitipping companies and Soviet
charterers are generally settled by the appropriate judicial
offices or - by agreement of the parties - by the Maritime
Arbitation Commission in Moscow. The place And procedure
for settling disputes with foreign organizations is specifi-
cally stipulated in the chartering contract. In the bill of
lading form KS-55 it is stipulated that all disputes are to be
settled in the USSR in accordance with Soviet law. It is
usually stipulated when concluding contracts with foreign
charterers thayisputes are to be settled by the Maritime
Arbitration Commission ia Moscow. In certain cases it
is stipulated that disputes arising in the port of loading
are to be settled by arbitration in the country where the
vessel was loided and that disputes arising in the port of
unloading are to be arbitrated in the country where the ship
was unloaded.'
Sometimes the charter-party includes. special
terms and stipulations - on war, on the limits of liability
of the shipowner, ice, conditions, etc.
f".
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8. The Bill of Lading in Transportation of
Foreign Trade Cargo
Despite the existence of a chartering contract
(charter-party), which establishes the conditions for trans-
porting cargo, the carrier must, according to Article 78
of the Code of Commercial Maritime Navigation, furnish
the shipper a bill of lading'if the shipper demands one
(Supplement 30). In a number of charters the captains obli-
gation to sign bills of lading presented to him by the shipper
is specifically stated.
A bill of lading fulfills three functions: First,
it serves as an acknowledgment or receipt confirming the
receipt of cargo for transportation by the carrier; second,
it is a document which serves as evidence of the existence
and content of the cargo transportation agreement; finally,
in representing the carrier's obligation to turn over the
cargo at-the.point of destination, it serves as a goods-
disposal document, giving the lawful bearer of the bill of
lading the right to dispose of-the cargo. When there isa
. charter-party, the bill of lading fulfills mainly the first and
' third functions, that is, it serves as. proof ,that the carrier
has received the goods for shipment and as a goods-disposal
docuinent;,/the legal relationships between the carrier and
shipper,.(Cliarterer) are, regulated in this case by the chartering
contract - the charter-party.
The legal relationships between-the carrier and
the consignee are determined not by the charter-party but by
/0
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be content of the bill of lading. Provisions of a contract
for maritime transportation not set forth in the bill of
lading are binding on the consignee only if the bill of lading
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contains a reference to the charter-party (Art. 76 MSC).
In certain charters, for example, in Soviet
timber charters, the text of the bill of lading appears on the
reverse side and it is stated that the bill of lading should be
signed by the captain with the reservation that "quality,
quantity and size are unknown." This signifies that the
?
carrier has not checked the grade, quality, or type of timber
44rvessort-rtkikehelitY6-;--p-inWartesest, , nor its quantity in feat-
meters ( ?), standards, warehouse meters (?) or other units,
as stated by the shipper and included in the bill of lading;
consequently, the carrier is not responsible for discrepancies
which might be discovered between the data in the bill of
lading ?and the actual quality and quantity of the timber. In
shipped sawed materials, the carrier is responsible only for
?
the number of "ends," insofar as boards are accepted by a
vessel for shipment according to the number count. In trans-
porting props (for pit supports) and pulpwood (as raw material
for the cellulose industry), quantity is determined by the
shipper in warehouse measure (cubic meters, cubic sazhens),
and the carrier is not responsible for the accueary of the
measurements.
The Soviet Black Sea Grain Charter stipulates that
the captain should sign the bill of lading with the 'reservation;
MO=Is ???I?1?MIAI
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"Weight, quantity, quality, and contents unknown." In receiv-
ing grain cargo for shipment, the weight is determined by the
shipper without the participation of the carrier; the qualify
and classification fiereite/rW6vifteet.) of the cargo are declared
in the bill of lading according to the statement of the shipper,
and the ?contents of the sacks, if the cargo is being shipped in
packed form, are not checked by the carrier. Thus, the
reservation mentioned above protects the carrier from being
held liable for false listing by the shipper of the quantity and
quality of the cargo. According to the terms of the charter,
the carrier is held liable for damage affecting the quantity
or quality of the cargo only if this damage was inflicted on
the cargo through the fault of the carrier.
However, in the practice of Soviet foreign trade
transportation, grain, when being loaded on Soviet vessels
from elevators, is weighed on automatic elevator Scales.
This system for receiving and surrendering grain cargoes
for shipment is reflected in a special agreement between the
Ministry of the Maritime Fleet and the Ministries of Foreign
Trade and Procurement.
In a standard general charter, an appropriate
provision requires the captain.th sign the bill of lading accord-
ing to?the rates presented to him, but if the amount of the
.freight charge according to the bill of lading is less than it is
according to the charter, the difference is to be paid to the
captain in cash when the bills of lading are signed. ?
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Bills of lading signed by the captain should not
impose on the carrier greater obligations or more liability
than the charter does. If the charter contains conditions
which are to the advantage of the carrier but which are not
designated in the bill of lading, the following stipulation
should be included in the bill of lading: "All conditions,
rules, stipulations, and exceptions as in accordance with
the charter-party of such and such a date." This is necess-
ary because, as was pointed out above, while the relations
of the carrier and the charterer, according to Article 75 of
the Code of Commercial Maritime Navigation, are determined
by their agreement - that is, the charter - the legal relation-
ships between the carrier and the consignee are determined
by the bill of lading (Art. 76, MSC). The introduction of the
above-noted stipulation in the bill ,of lading transfers to the
legal relationships between the carrier and the consignee the
conditions provided in the charter.
In many cases when shipping, aboard Soviet vessels,
export cargo from USSR ports to foreign ports or import cargo
from foreign ports to USSR ports, , the parties concerned often
do not conclude special chartering contracts (that is, charters)
and the shipping is carried out solcly according to the bill of
lading.
In the absence of a charter-party the bill of lading
regulates the relations of the carrier not only with the consignee
but also with the shipper. Thus the bill of lading, Form KS-55,
which is used in foreign shipments (see appendix 30), contains
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on the front and reverse sides a detailed statement of the
conditions under which the maritime shipment is being carried
out, the basic regulations of Section A, Chapter V, of the
Code of Commercial Maritime Navigation USSR and the Gene-
ral Rules for Transporting Cargo on Ships of the Maritime
Fleet USSR. It is stipulated in the bill of lading that the
shipper, consignee, and bearer of the bill of lading, and other
interested parties as well, fully accept all printed, hand-written,
or stamped rules, conditions, and stipulations in the bill of
? lading..
According to the terms of the bill of lading, Form
KS-55, the carrier does not check the weight or volume of
bulk and loose cargo when it is loaded; this frees the carrier
from responsibility for a discrepancy between the actual weight
of the bulk or loose cargo turned over at the point of destination
and the weight listed by the shipper and entered in the bill of
lading (except instances Where the short weight is the result of
a-flagrant violation of the, shipping rules, negligence in the
receipt of cargo for shipment Or loss ofopart of the cargo through
the fault of the carrier).
9. Content of a.Bill of Lading and Procedure of its
Preparation
Shown in the bill of lading are the name of the vessel,
the carrier, the shipper, and the consignee (or it is stipuIated.
that the bill of lading is being issued to the order of the shipper,
the consignee, or the bearer, the loading point and the destination -
point, the description and quantity of cargo, the markings present
55 ?????1411?
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upon it, the time and place of issuance of the bill of lading
and the number of copies of the bill of lading issued. The
bill of lading is signed by the carrier's agent or by the
captain. A bill of lading which does not contain the above-
indicated data and does not bear the signature of the carrier's
agent or the captain is void.
The bill of lading also indicates the freight charge
and other payments due the carrier, or it may be stipulated
that the freight charge is to be paid according to the charter-
party or the tariff. If the freight charge is collected when
the goods are shipped, a notation is made on the bill of lading
as to payment of the freight charge. When an advance is
issued against the freight charge, a notation is made to this
effect on the bill of lading, indicating the amount advanced.
If in the transportation of bulk and loose cargo,
the data indicated by the shipper with regard to quantity of
cargo has not been checked by the carrier, the carrier may
make appropriate notation of this on the bill of lading. The
same notation can be made when shipping any other cargo,
particularly when the carrier has reapan to believe that the
data regarding the quantity of cargo have been inaccurately
.stated by the shipper Art. 82 MSC).
In foreign shipping practice, the shipper often
requests that he be furnished several copies of the original
of the bill of lading. In such an event a notation is made on
????%. _
each of the copies of the total number of copies prepared;
?
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sometimes, furthermore, a superscription is made, i.e.,
first original, second original (duplicate), third original
(triplicate). If more than one copy of the bill of lading had
been issued after the cargo has been delivered on the basis
of one of these copies, all the remaining copies become
void as goods-disposal documents (Art. 83 MSc).
Several copies of the bill of lading are also
prepared for the carrier, the captain, the customs office,
the agent, and stevedore in the port of unloading, for the
shipper, etc.
The bill of lading is prepared on the basis of a
written declaration - the loading order, signed by the shipper
(Art. 78, MSC), who bears the responsibility for the data in-
dicated in it; he answers for damage which occurs as a result
of inaccuracies or improprieties which may slip into the loading
order (Art. 79 MSC). In foreign ports there is no single form
for loading orders. However, loading orders should always
contain all the data necessary for preparing a bill of lading.
The procedure for preparing loading orders in foreign trans-
portation from Soviet ports is 'similar to that used in.citiotage
transport.
The captain's mate for loading operations,? upon.
receipt of the cirgo, signs one of the copies of the loading
order (the pilot's receipt); if necessary, he makes note of
discrepancies in the data, of the condition of the Packing, the
- marking, etc. On the basis of the pilot's receipt the bill'of
lading is drawn up in the port of origin.
argl.M16 ...1?1101110
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One copy of the loading order remains with the
cpptain's mate for loading operations4or_ comparison with the
bill of lading before the bill of lading is signed by the captain.
In foreign ports the bill of lading must be signed by the
captain personally.
In the transport of general cargo (packed and in
individual pieces) from Soviet ports, bills of lading are usually
- prepared by the ship's agent (the cargo or transport-consign-
ment office of the port, the maritime agent). For bulk cargo
(timber, grain, ore, coal, oil, etc.) being loaded on the
shippers' wharvesimotairiga111119110iirreinsarvolitisitivdeti;Vgrea-
'ereprirritelW, the bills of lading are drawn up, as a rule, by
. the shipper and are presented to the captain for signature. In
foreign ports bills of lading for Soviet ships are usually drawn
up by the agents of the shipping enterprises.
10. Types of Bills of Lading
A bill of lading is made out to a specifically named
consignee (a name bill of lading), to the order of a shipper or
consignee (an order bill of lading) or tc?,41,bearer. If it is not
indicated in an order bill of lading to whose order it wad drawn
up, it is considered as having been drawn up to the order of the
shipper (Art. 80 MSC). In accordance with Art. 81 of the
Merchant Shipping Code, the rights connected with a name bill
of lading can be transferred to another party only on groun* ds
established for transfer of a debt claim.
The holder of an order bill of lading can transfer
his rights connected with the bill of lading to another juridical
?
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.ammORDI
or physical entity by means of a transfer endorsement
ty name (imennoy peredatochnoy nadpisi). If in the endorse-
ment it is indicated that the bill of lading is being trans-
ferred to some particular individual or to his order, then
the bill of lading can be transferred further in the same
manner, If, however, the endorsement makes no mention
of order, then the bill, of lading after this transfer ceases
to be an order bill of lading and becomes a name bill of
lading. An order bill of lading can also be transferred by
endorsement in blank; it then acquires the character of a
goodoidisposal document in the name of the bearer.
The transfer of rights connected with a bill of
lading made out to bearer is accomplished by means of a
simple delivery. Any individual presenting such a bill of
lading to the carrier is entitled to obtain the cargo designated
in this bill of lading.
In cabotage transport and transport of import
cargo on Soviet vessels, the writing of bills of lading to the
bearer and to the order of the shipper or consignee is not
practiced. In the shipping of export cargo and in shipments
between foreign ports, the issuance of such bills of lading
is a widespread practice. This is explained by the fact that
in shipping cargo in foreign navigation, the bill of lading,
as a goods-disposal .document, often serves as an instrument
of purchase, sale, and collateral; fromthe moment that it is
issued by the carrier until the time that it is presented to the
captain of the vessel in the port of destination, a bill of lading
can change hands several times.
148
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lo4.0 ?
In the bill of lading Form KS-55 there are two
variants of the wording for receiving cargo for shipment,
namely, "Shipped in apparent good order and condition" and
"Received for shipment..."
In the first case the bill of lading is issued for
cargo loaded on board the ship; in the second case the bill
of lading is issued for cargo not yet loaded on board the ship
but accepted by the carrier for subsequent loading and ship-
ment. The inapplicable variant is deleted.
In the absence of through transportation between
the ports of origin and destination, transfer of the cargo
to another ship may be carried out at an intermediate port.
If the carrier undertakes to perform such transportation,
then by agreement with the shipper he can issues.,,direct, or
through, bill of lading, assuming the obligation not only to
deliverythe cargo on his own ship, but also on the ship of
the other carrier, whereby the first carrier is responsible
for the cargo only until it is turned over to the seconcI carrier
indicated in the through bill of. lading. A through bill of lading
can be issued only if there is an appropriate agreement with
,the second carrier,
In the practice of shipping export cargo on Soviet
?
? vessels through bills of lading are not used, as a rule. Except-
ions are permitted only in certain cases, when the shipping
company, in issuing a through bill of lading, reaches a special
agreement with the shipper requiring the shipper independently
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to see to the transshipment of the cargo from the terminal
point of the course followed by the Soviet vessel and relieving
the shipping company of any responsibility for delivering the
cargo to the destination point indicated in the bill of lading.
In connection with a demand made by the owner of
foreign trade cargo to deliver (realizovat') the cargo. listed
in the bill of lading not as a complete unit but in lots, it may
be necessary to divide the bill of lading into separate parts.
Such a split is achieved in practice by means of so-called
partial bills of lading or delivery orders. A delivery order is
an order to turn over part of the cargo being transported.
There are many types of delivery orders; they can be divided
into two groups. The first group includes orders issued by
the bearer of the bill of lading and sent to the carrier or his
agent; the second group includes orders issued by the carrier
himself or his agent and constitute the obligation of the carrier
to turn over a specified quantity of cargo. An intermediate
position is occupied by delivery orders issued by the consignee
and accepted by a representative of the carrier. In all Cases
where cargo is turned over in accordance with delivery orders,
the carrier should demandadzsi the basic bill of lading with the
Consignee's receiptfor the goods in order to avoid a demand by
'the-bearer of a'bill of lading to turn over cargo already released.
in 2.6cordance'wi.th delivery orders. Delivery orders are not
used. in the shipping of import goods of Soviet charterers.
In the carrying of cargo in foreign transportation,
a list is made of all lots of cargo loaded aboard ship and identi-
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fied in bills of lading. This list is known as a manifest
(Appendix 31). A manifest is prepared individually for
each port of unloading. It serves mainly for organizing
'
unloading operations and for cut toms formalities relative
at the port of destination. The manifest should include all
cargo destined for unloading at the given port; otherwise,
the customs authorities at the port of destination will subject
the vessel to a heavy fine. Inclusion in the manifest of cargo
not actually on board the ship may also lead to the imposition
of a fine on the ship and to a demand for payment of duties
for goods included in the manifest but not discovered aboard
ship by the customs authorities. Thus it is very important
to check carefully to see that the manifest corresponds to the
cargo actually aboard ship according to the delivery orders
and signed bills of lading.
S.
11. Rules for Marking Export-Import Cargo
The shipper's markings on export cargo should con-
tain the following information:
a) The abbreviated name of the organization of
the Ministry of Foreign Trade exporting the cargo. (For example,
SPE- Soyuzpromeksport; VIT?Vostokintorg, etc.);
b) the number of piece;
c) point of destination (if known);
d) gross and net weight;
11.1Mm?
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In addition, the exporting organization may employ
additional markings; for example, markings indicating the
classification or category of goods, the factory mark, markings
indicating the country from which the goods originate, etc.
The transport mark often is not inscribed directly
on the packing, but on tags fastened by the shipper to the pieces
,of cargo.
Markings on import goods must contain the following
information:
a) The abbreviated name of the import organization;
b) the number of the transport instruction, crate
(naryada), and order;
c) the gross and net weight;
d) the point of destination;
e) the name of the consignee.
If the shipper does not know the point of destination
and the name of the ultimate consignee, these items are not
included in the marking. In such cases "raznaryadka" (uncrating? )
takes place in the Soviet port, and the point of destination and
the name of the consignee are additionally inscribed on the packing
-before the goods are shipped out of the Soviet port.
Anlimm ammo.
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Fifth Division
TRANSPORT AND FORWARDING OPERATIONS OF THE PORTS
CHAPTER 39. GENERAL CONCEPT OF TRANSPORT
AND FORWARDING OPERATIONS
pp."316.3.3I #1. Auxiliary Operations
In accomplishing maritime transport activities, the
necessity arises of performing a series of auxiliary operations
at the points of dispatch and destination. By virtue of the
rules in effect for maritime, transport in the USSR, a part
of these supplementary operations are assigned to the carrier
(handling the flow of cargo in through transport by rail and
water combined, conducting loading operations in a number of
ports, etc.). However, a large part of the supplementary
operations are not incumbent on the carrier and are fulfilled
by the shipper or the consignee.
In the port of dispatch, these auxiliary operations
include: preparing the cargo for shipment (packing the cargo
in a seaworthy manner suitable for maritime shipment, putting
on the shipping marks, completing and sorting parcels of
cargo, etc.) delivering the cargo to the port from the
shipperts warehouse, filling out and arranging transport and
-shipping documents (the loading order or bill of ladink,),,
bringing the cargo to the sea-boat, loading (if this is not
the task of transport), paying freightage, redeiving portage
documents (the bill' of lading, the receipt). In cases where
guards are to accompany the cargo being shipped, it is necessary
to appoint .guards and arrange their passage.
If theCargo has arrived in port by rail or river, then
transport afia forwarding. operations also include the taking
over Qf carge, from the preceding carrier and delivery of cai-go
to the harbor wharf or to the warehouse.
m -
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?445,
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.Auxiliary operations in the port of destination include
payment for cargo; acceptance of cargo from the carrier
(vessel or port), delivery to the warehouse of the consignee;
A
and turning over of cargo to the consignee.
If the cargo is supposed to travel farther in another
form of transport, then instead of delivering it to the con-
signee at the port of destination, it is necessary to turn
over the cargo to river transport or to the railroad and per-
form the tasks connected with this procedure (writing orders
for freight cars, etc.). The necessity often arises of tem-
porarily storing cargo in port before shipping it by maritime
transport or before delivering it to the consignee. While
the cargo is in the warehouse, it is soemtimes inevitable to
repair or replace the packing and wrappers, to repack, sort
and marIE the cargo, or take samples, etc.
If the cargo has arrived from abroad or is intended for
shipment abroad, customs procedures must be completed, and
for some cargoes, sanitary formalities must be complied with.
All these auxiliary operations, which are closely linked
with the work of the basic carrier, must be carried out by
the cargo owner (the shipper or the consignee).
Thus transport and forwarding operations can be defined
as a combination of auxiliary operations which the carrier is
not Dbliged to perform; they are only supplementing his basic
functions in transferring cargo.
2-tegal Position and Responsibility of the Forwarding Agent
Auxiliary operations can be performed by order of the
cargo owner by special transport and forwarding organizations.
Transport and forwarding organizations, acting by order,
in the name and at the expense of.ip.,.9.3gpr2wners, acquire no
rights to the cargo and assume no respontbility resting with
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_
resting with the cargo owner, on the strength of the contract
which the cargo owner has entered into with the carrier.
The transport and forwarding operations are essentially
brokerage operations, and the contract between the cargo
owner and the carrier is a brokerage contract.
The Civil Code of the RSFSR (Page 275-A) stipulates that
accprding to a brokerage contract, one party (the agent)
undertakes by order of the other party (the client), to carry
out against payment one or several transactions at the expense
of the client. Among the number of commissions mentioned
"the dispatch and insurance of cargo" is one of the subjects
of a brokerage contract.
The amount of the brokerage fee is determined by agree-
ment between the parties to the contract; in the absence of
such an agreement, it is determined by a court or by arbitration.
The agent is obliged to execute the commissions he has
undertaken accurately and speedily, observing the interests
of the state and acting with due effica6y on behalf of his
client.
The forwarding agent is liable for damage inflicted on
the cargo as a result of a careless execution of obligations
he has assumed, as well as for the safety of the cargo during
the time it is at his disposal, unless he can prove thtloss
or damage of the cargo occurred because of circumstances he
could not prevent, despite his having taken the proper pre-
cautions (Page 275-1 of the Civil Code of the RSFSR).
The forwarding agent is responsible for the cargo'from
the moment he receives it from the cargo-owner until be turns
the freight over to the carrier at the point of dispatch,
and from thenment he receives the cargo from the carrier at
the point of destination until, he delivers it to the cargo
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owner, or transfers it by order of the owner, to other means
of transport or to some other organization. The forwarding
agent is. liable for actions, carelessness, or negligence of
his workers--for sending the cargo to the wrong place or
mixing up parcels etc. The forwarding agent is not responsible
for the actions of the carrier or other organizations to which
he has given turned over the cargo, in executing orders from
the cargo owner.
The handing over of cargo to the carrier or to another
organization should be confirmed by documents. As proof that
the business undertaken has been executed, the transport
and forwarding organization should give the cargo owner a
receipt, voucher or some other document, confirming that the
cargo was turned over to the authorized party or organization
in a proper form.
As a rule, payment for the services of transport and
forwarding organizations is made only after the assignments
have been fulfilled. The cargo owner is obliged to supply the
forwarding agent with fund for paying freightage, fees, fines,
cost of storage and charges for the execution of loading-un-
loading operations, etc.
Disputes ensuing from transport and forwarding contracts
are examined by the institutions of state arbitration according
to the general rules for examining disputes between economic
organizations applying the general terms for bringing in an
action.
The forwarding organizations, in order to secure the
amounts due them for execution of commissions froM cargo owners
have the right to detain goods, temporarily at their disposal
until their claims Eave been satisfied. (Page 275R of the
Civil Code of the RSFSR).
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3-The Principal Distinction Between Transport-Forrwarding
Organizations in the USSR and in Capitalist Countries
Transpqt and forwarding organizations in capitalist
countries are private enterprises. Their basic goal is to
derive the maximum profits. They often receive from shipping
companies covert rebates, paid to them for the purpose of
diverting Cargo from competing ship owners.
Many forwarding companies in capitalist countries have
at their.dispossl a very insignificant productive apgrtus; and
some have no such facilities, using for transport and for-
warding operations the services of other people's motor-trucks,
other people's warehouses, etc. and receiving profits only
for norganizingn shipping, transport and forwarding services.
The work of Soviet transport and forwarding organizations
differs distinctly in principle from the activities of the
transport and forwarding agencies of capitalist countries.
Soviet transport and forwarding organizations are socialist
enterprises, whose entire activity is based on planning and
is linked with the work of the basic forms of transport and
with the production plans of clients*
The basic task of Soviet transport and forwarding com-
panies is the most expedient organization of the transportation.
process, from the viewpoint of the state as a whole, and the
most rational utilization of the means of transport.
By uniting the forwarding service for a group of clients,
Soviet forwarding organizations are achieving significant
economies.
4-The Organization of Transport and Forwarding Operations
in Maritime Transport in the USSR
The transport and forwarding work is a part of the
commercial activities of the ports and is mainly carried out
on the territory of the ports; it does not include the work
in warehouses of the shippers and consignees of cargo.
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Because of the absence of special organizations in mari-
time transport called upon to accomplish the transport and
forwarding service for clients these operations (primarily
involving foreign trade cargoes) are carried out by the trans
port and forwarding offices (TEK) or transport and forwarding
departments (TEO) of the maritime ports.
Individual transport and forwarding operations are per.
formed in certain ports by the dispatching organs, and also by
the chief shipping agendies acting as agents for foreign and
Soviet vessels employed in foreign navigation (Inflot).
The organizational structure of transport and forwarding
offices and departments in sea-ports are shown in the diagram,
drawing 26. The diagram is only an example, since the organi-
zational structure depends on local conditions, and the character
and volume of work in the port.
As is evident from the diagram in drawing 26, the trans-
port and forwarding office includes a unit which handles
cargo in through transport by rail and water combined. Trans.
ferring cargo from water transport to the railroad and vice-
versa, in accordance with regulations in force, is among the
operations the carrier is obliged to perform. Ports perform
these operations in the name and by commission of the mari-
time shipping companies as agents of the carrier. Since
shifting the cargo is the carrier's obligation, operations
in transferring cargo are not officially reckoned as transport
and forwarding operations.
In a number of places--for examples in Odessa and certain
other Black Sea ports--there are no centralized transport and
forwarding arrangements. In such cases, basic transport and
forwarding work is transferred, to the loading-unloading sections
and combined with warehouse work; certain operations are per-
formed by-the departments of the port administration. The
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general management of transport and forwarding work is assigned
to the commercial department of the port. Placing orders for
freight cars, regulating the supply and collecting goods-trucks
etc. are _tasks with which the railroad branch of the chief
dispatching unit of the port is charged.
The organizational structure for handling the transport
and forwarding business in ports where there is no centralized
transport apparatus is shown by the diagram in drawing 27.
In the port of Leningrad, the general management of the
work of the transportand forwarding office is carried out
by the chief dispatching unit of the port. In the ports of
Leningrad and Riga accounts with the clients for work which
has been completed are kept by the revenue unit of the financial
department of the port.
5-Functions of the Transport and Forwarding Office
of the Port
The transport and forwarding offices of ports (or the
corresponding departments of loading-unloading sections)
carry out the followhg operations:
a) They receive, from vessels and from the railroad,
transport documents--bills of lading, way-bills, manifestos,
the loading plans bills of receipt and delivery, etc. and
check whether all documents have been delivered to the port.
b) They write up in general file copies the outcome of
unloading of vessels which have arrived from abroad; and in
the event that imported cargo on foreign shipps has arrived
carelessly packed, with defects or shortage in weight, they
prepare official reports.
c) They receive from organizations of the Ministry of
Foreign Trade commissions (orders) to unload imported cargo
by rail or seal and to deliver this cargo to local consumers.,
.131.110
Owns omem....
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?11?111.111. ?????1.
d) They supervise the execution of orders made by clients
and the movement of export-import cargo, according to indivi-
dual 'clients and transport documents.
e) They draw up plans fir distributing cargo in ware-
houses bn the basis of assignments from clients, in Order to
devebp technical plans for unloading import and export cargo
and thus establish the consecutive order in which parcels are
to be shipped and completed; they also carry out reweighing
of the entire or partial load on behalf of clients.
C) They prepare, when unloading import cargo, railroad
way-bills in the name of the client and receive from Ghe
railroadLstation receipts of way-bills for the unloaded cargo;
they give orders to the railroad station for rolling stock in
accordance with the plan for providing goods-carriages for
import cargo; they secure and separate goods in freightcars
which are being sent by rail.
g) They distribute and arrange the release of cargo from
port according to the assignments of the associations of the
Ministry of Foreign Trade.
h) They keep accounts with the railroads for transpor-
tation of export cargo, supervise the reception of export cargo
by warehouses and receive from railroad stations commercial
documents when necessary. They prepare documents for export
cargo preliminary listed for loading on specified vessels;
and on the basis of vouchers from the first officer they
receive bills of lading (to complete the bills of lading is
the responsibility of the carrier; in-individual ports Inflot
performs this function).
i) They accounts with clients for transport and
forwarding operations performed by the port?such as loading,
unloading, work in warehouses, etc.; they also keep accounts
it 0
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on freightage (in cases where these accounts are kept by the
port).
j) They render accounts to clients for functions per-
formed and assumed in accordance with the contract for trans-
port and forwarding operations.
The transport and forwarding. offices organize and check
the work of warehouses in ports.
Transport and forwarding offices of the ports clear their
work with the commercial harbor department or perform it under
their immediate supervision.
144
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