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Shipping terms

Copyright notice: Vakiolaivausehdot 2008 - Standard Shipping Terms 2008 (c) (tm) is protected by copyright and trademark. All rights are reserved by ICC Finland / ICC Palvely Oy. No part of this work may be translated and / or reproduced or copied in any form or by any means without written permission of OCC Finland / ICC Palvelu Oy. Original publication can be ordered: www.icc.fi

Finnlines Plc has been given written permission by ICC Finland / ICC Palvelu Oy.

The Standard Shipping Terms 2008 define the obligations of the Contracting Shipper and the Carrier, as parties to the Contract of Carriage, in marine transportation of break bulk goods in Finnish ports.

The Standard Shipping Terms 2008 are based on the customary loading and unloading practices in Finnish ports. Their background is the Finnish Maritime Code as in force after 1st October 1994. In addition to a contract of carriage by sea, the Shipping Terms 2008 can, where applicable, be used also in transports under a charter party and in other kinds of transport.

Besides the Contracting Shipper and the Carrier who are parties of the Contract of Carriage, the Consignee has his role in carrying out the Contract of Carriage. The term “Contracting Shipper” covers in these Shipping Terms the Shipper who is a party of the Contract of Carriage and those subcontractors who act by order of the Shipper or on his behalf. The term “Carrier” covers the actual carrier, the subcontractor acting by order of the Carrier or any other subcontractor.

The Standard Shipping Terms 2008 have been devised to contain options, from which the parties can choose the Shipping Term which is the most suitable for their Contract of Carriage. In addition to a general reference (e.g. Standard Shipping Terms 2008/ ICC Finland), the parties must specify the shipping terms chosen in the way which is described in each Shipping Term, if the Shipping Term contains alternative courses of action. It is not necessary to repeat the contents of the chosen term in the Contract of Carriage, as a plain reference is binding enough.

The Contracting Shipper and the Carrier can freely agree on their mutual obligations in loading or in discharge within the law applied. If a Shipping Term is in conflict with such a contract, the latter must be applied. In other words, the Shipping Terms are applicable when the parties have decided to include one term in their Contract of Carriage, and in so far as it has not expressly been agreed otherwise.

“The Contract of Carriage” may concern one or several carriages or it may be a frame agreement for long term, e.g. for one year.

The Standard Shipping Terms 2008 are in harmony with

  • The Finnish Maritime Code of 1994
  • The Incoterms 2000 trade terms in so far as the trade term which describes the obligations of the Buyer and the Seller refers to the custom of the port, to the delivery of the goods to the Carrier or to the delivery of the goods to the Consignee.
Definitions

Trailer is a trailer with one or more axles, which is meant to be coupled to a tractor unit or to a dolly; it is transported to the port of loading by the Contracting Shipper’s tractor unit, then on a vessel to the port of destination by the Carrier, and from there by the Consignee’s tractor unit. In these Shipping Terms, the term “trailer” also means other equivalent wheeled largesized unit load.

Container is a container as defined in the Container Safety Convention (CSC). In these Terms ‘a container’ also means a demountable body as defined in the EU standards, or other largesized unit load which can be handled similarly to a container, which is on a flat and which the Carrier has accepted to transport.

Conventional means of cargo handling is a method of cargo handling in which the cargo is lifted over the vessel’s rail either by a crane on land or by a crane on board the vessel.

Means of transport is a means of transport used is land transport such as a truck, train or other corresponding vehicle.

Contracting Shipper is that party of the Contract of Carriage who has made a contract with the Carrier for the carriage of goods by sea. Usually the Contracting Shipper acts either as the actual shipper or the Consignee, or as their principal. In these Shipping Terms, the term ‘Contracting Shipper’ means the Contracting Shipper as defined in Chapter 13, Carriage of Goods, of the Finnish maritime Code, or, depending on the circumstances, the charterer in a voyage charter.

Carrier is that party of the Contract of Carriage who has undertaken to perform a carriage on terms agreed with the Contracting Shipper. It covers also any person or company acting on his behalf. In these Shipping Terms, the term ‘Carrier’ means the Carrier as defined in Chapter 13, Carriage of Goods, of the Finnish Maritime Code, or, depending on the circumstances, the Carrier in a voyage charter.

Roll-on/roll-off transport is any transportation done on a roro-unit.

Large-sized unit load is a largesized, mechanically handled unit of transport which often consists of smaller units of transport. In the Gate Term and the C/Y Term, the large-sized unit load is a unit load similar to a container and which can be handled in the same manner. In the Trailer Term, the mentioned large-sized unit load is a large, wheeled unit load similar to a trailer.

Stipulated time is the time within which the Contracting Shipper or the Carrier must deliver the goods to the other party. It can be an exact point of time, a date or a period of time e.g. a week. If it is not separately agreed, the Carrier defines or gives notice when or by which time the Contracting Shipper must deliver the goods to the Carrier in the port of loading, or the Consignee must take delivery of the goods in the port of discharge. In the port of loading, the aforementioned defining, giving notice or agreeing takes place between the Carrier and the Contracting Shipper or the Shipper. In the port of discharge, it takes place usually between the Carrier and the Consignee.

Goods in these Shipping Terms means also an article of transport (a container, a flat etc.) which the Contracting Shipper has provided and on which the goods have been loaded. ‘Rent-free period’ is the time granted by port and/or port operator for preparing the handling of goods, containers or trailers before loading or after discharge.

Warehouse is a shed, a storage yard or terminal or, in container transport, a container yard or a container freight station in a port.

Consignee is the one, who, on grounds of the Contract of Carriage, the transport document or the law, has the right to take delivery of the goods from the Carrier in the port of destination. The obligations and liabilities of other parties but those mentioned in these Shipping Terms are determined on the basis of the applicable law.

Standard Shipping Terms and trade terms

The Standard Shipping terms deal only with the contractual relations between the Contracting Shipper and the Carrier. The Contracting Shipper must pay the freight in accordance with the Contract of Carriage. The Carrier must take delivery of the goods, issue a transport document in accordance with the contract, transport the goods in accordance with the Contract of Carriage and hand the goods over to the Consignee.

Correspondingly, Incoterm trade terms deal only with the contractual relations between the Seller and the Buyer and they do not affect the rights or the obligations between the parties to the Contract of Carriage. However, in accordance with several Shipping Terms, the Seller’s obligation to deliver and the Buyer’s obligation to take the delivery is in the end determined by when the Seller hands the goods over to the Carrier or when the Carrier hands the goods over to the Buyer or to his representative. From the point of view of the parties to the sales contract, it is important to choose such a Shipping Term which fulfils the conditions, set by the trade term, for delivering the goods.

The structure of the Shipping Terms

The structure of each Shipping Term is similar. In each term, the paragraphs concerning the same obligation have been set side by side so that the obligations of the contracting parties are easy to compare. It is s also possible choose different Shipping- Terms for loading and for discharge, in which case only the relevant part of the chosen term is applied.

These Shipping Terms define the obligations of the parties in the port of loading and the port of discharge, and they can be classified as follows:

delivery of the goods to the Carrier and taking delivery from the Contracting Shipper, and respective obligation to give notice to the other party delivery of the goods to the Consignee and taking delivery from the Carrier, and respective obligation to give notice to the other party

The most important obligations are delivering the goods and taking delivery of them, which are described in the first paragraph of each Shipping Term.

- passing of costs
- the period of the Carrier’s liability
- other duties (packaging etc.)

The shipping of containers, other largesized unit loads and trailers

Compared to the previous Shipping Terms 1996, these Shipping Terms include two new terms, the Trailer Term and the C/Y term. The Trailer Term describes the obligations of the contracting parties when a separately shipped trailer or other similar wheeled large-sized unit load is to be transported. The C/Y Term deals with the transportation of a container or other similar large-sized unit load which can be handled in the same manner as a container.

In practice, the term "trailer", in these Shipping Terms, almost always means a semi-trailer, and very seldom to a full trailer.

Gate term (ICC)

Overview

The object in the Gate Term is break bulk goods or a container or other large-sized unit load which can be handled in a similar manner. The Gate Term imposes the least obligation on the Contracting Shipper. In loading, he hands the goods over to the Carrier by delivering them at the time stipulated on a means of transport to the unloading point. The Carrier discharges the goods from an arriving vehicle and places them in a warehouse or loads them on board a vessel. The Contracting Shipper must provide packaging and mark the goods duly and load them on a means of transport in such a manner that they can be handled in a customary way.

The Carrier bears all the costs after the Contracting Shipper has, at the time stipulated, delivered the goods and made it possible for the Carrier to discharge the means of transport, until the time when the Carrier has fulfilled his obligation to deliver the goods. The Carrier is liable for damages to the goods only after he has, within the stipulated time, taken physical charge of the goods. If the Carrier fails to take delivery of the goods within the stipulated period, he has to bear all costs and risk thereafter. The liability is no longer his, when he has fulfilled his ob- ligation to deliver the goods.

In discharging, the Carrier hands the goods over to the Consignee in accordance with the contract between the Contracting Shipper and the Carrier, either by delivering the goods on the loading bay of a warehouse in the port of destination, ready to be loaded on a means of transport (Gate Term), or loaded on a means of transport named by the Consignee (Gate Term, loaded).

The Gate Term can be used also in container traffic when the Contracting Shipper hands the container over to the Carrier by delivering it in his means of transport to the port area and the Carrier lifts the container from the vehicle which has arrived. The Carrier hands the loaded container over to the Consignee by loading it on the means of transport which has come to fetch the container.

Gate term (ICC)

Trailer term (ICC)

Overview

The object in the Trailer Term is usually a smi-trailer, but sometimes also a full trailer or other wheeled unit. The Contracting Shipper brings the trailer, within the stipulated time, by a vehicle to the loading area in the port of loading. The Carrier checks the arriving unit at the gate of the port of loading or in the loading area.

The Carrier directs the trailer, or other corresponding wheeled unit, to the place named by him and after that he bears all risks of it. The Contracting Shipper bears cost of lay time until the Carrier transfers the trailer on board a vessel

The Carrier bears all risks of the trailer until the Contracting Shipper collects it. The Contracting Shipper bears costs of lay time.

In the port of discharge, the Carrier hands over the trailer, or other similar wheeled unit, to the Consignee by delivering it to the unloading area in the port area from where the Consignee fetches it.

The Carrier might check the unit in the port of destination before the unit is removed from the port area.

Trailer term (ICC)

Warehouse term (ICC)

Overview

According to the Warehouse Term, the Contracting Shipper hands over the goods and the Carrier takes delivery of them from the Contracting Shipper in a warehouse in the port of load ing. The Carrier hands the goods over to the Consignee in a warehouse in the port of discharge. The costs and the liability for damages are divided between the parties at the moment of delivery.

The Warehouse Term has two options: roll-on/roll-off transports and other methods of transport. In roll-on/rolloff transports, the Contracting Shipper delivers the goods to the Carrier to the terminal in the port of loading, loaded on a roro-unit. In other methods of transport, the Contracting Shipper hands over the goods in a warehouse in the port of loading when the Carrier takes physical charge of the goods. In the port of discharge, the Carrier delivers the goods in roll-on/roll-off transports on a roro-unit to a warehouse in the port or to a storage yard. In other methods of transport, he delivers them on the floor of the warehouse or to a storage yard.

Warehouse term (ICC)

C/Y term (ICC)

Overview

According to the Y/C Term, the Contracting Shipper hands the loaded container, or other large-sized unit load handled similarly to a container, over to the Carrier in the port of loading when the Contracting Shipper (in practice, the terminal operator acting on his behalf) delivers the container to the container yard to the place named by the Carrier (= the operator acting on his behalf). The handing over must take place within the stipulated time.

In the port of discharge, the Carrier hands the container over to the Consignee when the Consignee (the operator acting on his behalf) takes, within the stipulated time, physical charge of the container which the Carrier (the operator acting on his behalf) has delivered to the warehouse in the container yard.

C/Y term (ICC)

Ship term (ICC)

Overview

In the Ship Term, the Contracting Shipper delivers the goods on board a vessel. The delivery might also include stowing the goods and securing them to the vessel. The costs are divided and the liability for damages is passed when the goods are delivered on board the vessel in the agreed manner. Correspondingly, the Carrier hands the goods in the port of discharge, to be unloaded from a vessel, over to the Consignee, and this is the time when the costs are divided and the liability for damages is passed to the Consignee in the port of discharge alongside the vessel.

When loading and unloading are carried out in accordance with the Ship Term, they in practice equal with free in and free out.

Ship term (ICC)

Finnlines Door Term

Loading

The Contracting Shipper The Carrier
1. Delivering the goods or the container to the Carrier The Contracting Shipper delivers the goods or the container on the means of transport provided by the Carrier in the place and at the time agreed by the parties. The Contracting Shipper hands the goods or the container over to the Carrier when they are on the means of transport at the loading place and when the Carrier can take physical charge of them. 2. Taking delivery of the goods or the container from the Contracting Shipper The Carrier takes delivery of the goods or the container on the means of transport provided by the Carrier from the Contracting Shipper in the place and at the time agreed by the parties. The Carrier receives the goods or the container when he takes physical charge of them on the means of transport at the loading place.
3. Division of costs The Contracting Shipper bears all the costs of delivering the goods or the container in accordance with 1. Should the Contracting Shipper fail to deliver the goods or the container in accordance with 1 or should he fail to fulfil the obligations defined in 7, the Contracting Shipper is liable for all direct costs thereby incurred to the Carrier. 4. Division of costs The Carrier bears all costs of taking delivery of the goods or the container and after he has received them in accordance with 2. Should the Carrier fail to take delivery of the goods or the container in accordance with 2 or should he fail to fulfil the obligations defined in 7, the Carrier is liable for all the direct costs thereby incurred to the Contracting Shipper.
5. Division of liability The Contracting Shipper bears all liability or loss of or damage to the goods or the container until he has handed them over in accordance with 1. 6. Division of liability The Carrier bears all liability for loss of or damage to the goods or the container after he has received them in accordance with 2. Should the Carrier fail to take delivery of the goods or the container in accordance with 2, he bears all liability for loss of or damage to the goods or the container incurred thereby
7. Other Obligations The Contracting Shipper must provide suitable packing for the goods, mark the goods or the container and load them so that they can be handled in a normal way and be indentified as the contract goods. The Contracting Shipper must load the goods and the container and lash and secure its contents according to the requirements applied. The Contracting Shipper must give the Carrier sufficient information of the goods or container, in due time, for the delivery of the goods or container to the agreed place of shipment. 8. Other Obligations The Carrier must give the Contracting Shipper, in due time, notice as to when the goods or the container must be at the place for the Carrier to take the delivery. The Carrier is to lash and secure the goods or the container to the means of transport
 

Discharge

In case the parties have agreed that the Consignee shall discharge the content of the container (container owned by shipper or the Carrier) then the obligations of the parties as concerns the container are applied in similar manner to the contents of the container instead.

The Carrier The Consignee
1. Delivering the goods or the container to the Consignee The Carrier delivers the goods or the container, loaded on the means of transport, to the Consignee at the time stipulated at the place nominated by the Contracting Shipper to which the Carrier can reach with the means of transport and where the Consignee can discharge the goods or the container from the means of transport. The Carrier hands over the goods or the container when he, within the time stipulated delivers the goods or the container to the place nominated by the Contracting Shipper to be discharged or to be unloaded by the Consignee. 2. Taking delivery of the goods from the Carrier The Consignee takes delivery of the goods or the container from the Carrier, loaded on the means of transport, at the time stipulated at the place nominated by the Contracting Shipper to which the Carrier can reach with the means of transport and where the Consignee can discharge the goods or the container from the means of transport. The Consignee receives the goods or the container, within the time stipulated, when it is in his reach on the means of transport to be discharged by him
3. Division of costs The Carrier bears all the costs of delivering the goods or the container in accordance with 1, including port storage within the agreed free time and delivery. Should the Carrier fail to deliver the goods or the container in accordance with 1 or should he fail to fulfil the obligations defined in 7, he is liable for all direct costs thereby incurred to the Consignee. 4. Division of costs The Consignee bears the costs of unloading and handling the goods or the container including checking the goods, counting them and other activities consequent to the above after he has received them in accordance with 2. Should the Consignee fail to take delivery of the goods or the container in accordance with 2 or should he fail to fulfil the obligations defined in 8, he is liable for all direct costs thereby incurred to the Carrier.
5. Division of liability The Carrier bears all liability for loss of or damage to the goods or to the container until he has handed them over in accordance with 1. 6. Division of liability The Consignee bears all liability for loss of or damage to the goods or the container after he has received them in accordance with 2. Should the Consignee fail to take delivery of the goods or to the container in accordance with 2, he bears all liability for loss of or damage, thereby incurred, to the goods or to the container.
7. Other Obligations The Carrier must give the information necessary for taking delivery of the goods or the container in due time before the delivery. The information must be given to the person named by the Contracting Shipper. If the Carrier is unable to give this information to the named person, he can give it to the owner of the cargo, or if he does not know who is the owner, to the Contracting Shipper. The Carrier must indicate the discharging place to the person defined in this paragraph and give him notice as to when the goods or the container can be discharged from the means of transport. 8. Other Obligations The Consignee must seek the information relating to the delivery of the goods or the container, defined in 7, from the Carrier in the due time. The Consignee must notice the Carrier of any special requirements relating to the order or manner of delivering or taking the delivery of the goods or the container. The Consignee bears all additional costs incurred directly because of these requirements. In case it is agreed between the parties to the contract of carriage that the Consignee shall discharge the container itself from the means of transport and the container is owned by the Carrier, then the Consignee is obliged to return the container to the Carrier as separately agreed.

9. Applicability of Finnlines Standard Conditions of Carriage This Finnlines Door Service is subject to the conditions and terms of Finnlines Standard Conditions of Carriage, see particularly clause 4 of these Conditions (Law and jurisdiction) and Finnlines Container Transport Terms. In case of any discrepancy between Finnlines Door Service and the compulsory stipulation in any International Convention or applicable national law, the compulsory provision stipulations of the said convention or the national law shall prevail, only however, in such respects as Finnlines Door Service differs but no further. This Finnlines Door Term stated above is not applicable to Partial Container Load Transports.

Finnlines Gate Service; Trailer & Lorry 2010

Finnlines Plc ("Finnlines") is offering to the customers Gate to Gate service named "Finnlines Gate Service; Trailer & Lorry 2010". 

Ports                  

Finnlines Gate Service is applied in following port pairs:

Helsinki Vuosaari – Travemünde Skandinavienkai / Lübeck Nordlandkai
Helsinki (Vuosaari) – Rostock Überseehafen
Turku Pansio, West harbour – Travemünde Skandinavienkai / Lübeck Nordlandkai

Port services for classified, temperature controlled and frost / heat sensitive cargo in the respective ports are outside Gate Service. The customer is requested to contact the terminal operators.

Finnlines' services in respect to the temperature controlled and frost / heat sensitive cargo are provided in accordance with the terms and conditions of  "Booking and reporting form for reefer and heated units and subsequent terms and conditions”.

Service in force

Finnlines Gate Service is in force as from 1 January 2010. The customer is fully entitled to either contract with Finnlines on Finnlines Gate Service or  to contract on these services with a third party in the respective port or to contract with Finnlines on other terms applied by Finnlines in that respective port.

Finnlines Gate Service include invoicing services and electronic data services (eServices; Extranet) which are incorporated and developed to simplify customers' transport processes.

Electronic access, delivery control and checking at the gate:

Each port is equipped with an electronic access and delivery controlling system ensuring as much as possible that the Article of Transport is in a safe keep and custody during it's stay in the port.  The external condition of the Article of Transport is checked at both gates, in the loading and discharging port respectively.  The Article of Transport is checked internally only in case there is reason to suspect that the Article of Transport is packed, loaded, stowed lashed and secured in a faulty manner (see clause 25 of the Standard conditions of Carriage). This system enables Finnlines to plan the loading, the discharge and the positioning of the Article of Transport in the ports in a precise and timely manner in order to support as much as possible the planning of the logistics of the customer.

Incorporation of Finnlines Gate Service; Trailer & Lorry 2010, Liability and Notice of the claim                            

Finnlines liability is defined by the provisions of the applicable law and by the terms and the conditions of the Finnlines Standard Conditions of Carriage incorporating Finnlines Gate Service.

The customer is obliged, when taking the delivery of the Article of Transport, to check the Article of Transport visually and, if necessary, to file a written notice of claim to Finnlines head office or representative in the respective port. Finnlines carries a counter -check of the reported damage based on the condition checks. A notice of claim is to be given immediately when the damage is visually apparent, otherwise within three days from the receipt. The notice of claim and possible subsequent claim is handled by Finnlines head office.

Classified, temperature controlled and frost / heat sensitive cargo inside the Article of Transport                              

Lorries

Standard Shipping Terms 2008/ICC – Ship Term; loading and Standard Shipping Terms 2008/ICC – Ship Term; discharge

Finnlines Gate Service:

Finnlines Gate Service means that Finnlines, including its sub-contractors, provide care and custody, which is reasonably required by due diligence, for Article of Transport (Trailer or Lorry) and goods inside the Article of Transport during the time inbound Article of Transport passes the Gate until the time outbound Article of Transport passed the Gate in respective port, provided that the Article of Transport is not under charge of any other party, see below as specified.                               

Incorporated services   Physical receipt and delivery

Trailers

Standard Shipping Terms 2008/ICC – Trailer Term; loading and Standard Shipping Terms 2008/ICC – Trailer Term; discharge