unit-6.Cargo-Transportation-Insurance(xin)-国际贸易与实务.pptx

单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,SEIB OF GDUFS,*,单击此处编辑母版标题样式,Case study,Case 1:,a Chinese foreign trade exporter contracted with a Canadian importer to export 1000 pairs of sneakers in CIF terms,time of shipment is between July to August in the contract and letters of credit,5000 pairs of sneakers each month,and transshipment is allowed.Our exporter loaded 5000 pairs of sneakers on board the ship“Wuyi”on 31,st,July and got bill of lading for July,and loaded the rest of sneakers on board the ship“Triumph”on 10,th,August and got bill of lading for August.Both ships transshipped in Hong Kong and both lots of goods are transported to the final destination by“Noble”of Maersk INC.,1,Case study,Case 1:,Questions:,Was it transshipment?Why?,Could the seller safely get financed?Why?,2,Case study,Case 1:,(1)it is transshipment.According to UCP600:”transshipment means unloading form one means of conveyance and reloading to another means of conveyance(whether or not in different modes of transport)during the carriage from the place of dispatch,taking in charge or shipment to the place of final destination stated in the credit.”While in this case,the goods were shipped by“Wuyi”on 31,st,July and shipped by“Triumph”on 15,th,August.Both ships were totally different,so it was transshipment.,3,Case study,Case 1:,(2)The seller could safely get payment for goods as a result of conformity with the letter of credit clauses.,4,Case study,Case 2:,a Chinese foreign trade exporter exported 30000 boxes of goods,contracting to ship the goods in each lot during March to August,5000 boxes each month,payment by confirmed irrevocable letter of credit.The customer duly sent letter of credit on which the total amount are in conformity with the contract,but the shipping clauses indicated“the latest date of shipment is 31,st,August,by partial shipment.”Our exporter dispatched 5000boxes in March,6000 boxes in April,10000 boxes in May and 9000 boxes in June.The customer raised an objection to this.,Are we right to do this?Why?,5,Case study,Case 2:,in order to get payment in due time,we were supposed to do this.As credit is independent of the contract and once the credit and the relating documents are in conformity,the exporter can get payment.The Letter of credit generally indicate that”the latest date of shipment is 31,st,August,in partial shipments.”So our exporter was right,but in case of trouble in the following days,we shall adopt partial shipment in equal lots,which is corresponding to the contact and letter of credit.,6,Case study,Case 3:,A Chinese exporter exported 1000 tons of tungsten ore.The letter of credit stipulated“partial shipment is not allowed”.Later,the exporter loaded 500 tons each on the same ship on the same voyage number in Fuzhou and Xiamen.And the bill of lading also indicated different port of loading and date of shipment.,Does this act break the rule,？,7,Case study,Case 3:,according to UCP600 section B,”shipment commencing on the same means of conveyance and for the same journey,provided they indicate the same destination,will not be regarded as covering a partial shipment,even if they indicate different dates of shipment or different ports of loading,places of taking in charge of dispatch.”Thus,it didnt break the clauses and the bank shall not refuse to pay.,8,Case study,Case 4:,our exporter exported a batch of timber,handicraft,to Spain in CIF prices.The contract and letter of credit stipulated that shipment during may/June.However,we had difficulty chartering a vessel,and adopted partial shipment in two to three lots.,In this case did we break the stipulations of letter of credit?,9,Case study,Analysis,so long as we ship all the goods during May to June,the letter of credit has not to be amended.According to UCP600 Section 31A,”unless there are other stipulations,transshipment and partial shipment is allowed”.,10,Chapter Six,Cargo Transportation Insurance,11,Learning objectives,After,learn,ing this chapter you,will,be able to,understand the fundamental principles of cargo insurance,be aware of the risks and losses in ocean transportation,outline the scope of the Ocean Marine Cargo Clauses of CIC,frame the coverage of London Institute Cargo Clauses,understand the procedure for lodging claims,describe methods of stipulating insurance clauses in Sales Contracts,12,Definitions,Definition of insurance,“the practice of sharing among many persons,risks of life or property that would otherwise be suffered by only a few.”,Definition of marine cargo insurance,“the insurant enters with an insurance company and/or an underwriter into a contract of insurance in which the insurance company of an insurance premium and the insurance company will,according to the terms indicated in the insurance contract,indemnify the insurant of any loss that occurs within the scope of coverage”.,13,Parties involved in an insurance practice,the insurant/insured/assured,The party that,procures,insurance,Can be the exporter or importer depending on the Incoterms adopted in the transaction,the insurer,The party undertaking to indemnify the insurant against losses or damages,Can be the insurance company/underwriter,In China,PICC is usually the insurer,the claimant,The insurant may not necessarily be the claimant,Depending on:who has the insurable interest of the goods when the goods are damaged or lost,14,6.1 Fundamental principles,The,I,nsurable,I,nterest,P,rinciple,The,U,tmost,G,ood,F,aith,P,rinciple,The,I,ndemnity,P,rinciple,The,P,roximate,P,rinciple,The,S,ubrogation,P,rinciple,The,S,hare,P,rinciple,15,6.1.1 The insurable interest principle,Definition:The,financial interest,of a person in the subject matter insured,Forms of insurable interest:,Ownership of the goods,Charge of insurance,Freight,A policy without insurable interest is invalid,Proof of insurable interest is required at the time of making a claim,not at the time of effecting an insurance,16,6.1.2 The Utmost Good Faith Principle (Bona Fide Principle),Both parties be faithful and honest in entering into the insurance contract,Marine Insurance Act 1906:,If the Utmost Good Faith Principle is not observed by either party,the other party may avoid the contract,Avoidance of the contract,There is no fraud and the Contract is valid:serve as evidence in a court of law,Usually occurs when an insurer refuses to pay a claim,the insured has the right to challenge the insurers right to avoid the contract,A void contract,has no legal value,c,annot serve as evidence in a court of law,17,6.1.3 The Indemnity Principle,Definition,In the event of loss of or damage to the subject matter resulting from an insured peril,he or she is placed in the same position(not in a better or worse position than)that he or she enjoyed immediately before the loss occurred,Means of effecting indemnity,In theory:by replacing the ships or goods lost or damaged,In practice:by paying an amount of money equal to the value of the goods lost or damaged,Extent of indemnity:total indemnification be limited to,the insurance amount:110%of the insured value,the actual loss suffered,the insurable interest of the claimant,18,6.1.4 The Proximate Cause Principle,About the Proximate Cause Principle,employed in the judgment of causation between accidents and losses,refers to the major and/or effective(not necessary the first or the last,but the dominant)cause that has led to the accident.,The insurer shall only be responsible for the loss resulted from,the,dominant cause.,19,6.1.4 The Proximate Cause Principle,How to decide the proximate cause,In case of only one cause,within insurance coverage:the insurer shall indemnify,beyond insurance coverage:the insurer shall not be responsible for the loss,In case of two or more than two causes,If all causes are within the insurance coverage,the insurer hold responsible for the loss.,20,6.1.4 The Proximate Cause Principle,How to decide the proximate cause,If the former cause is within the scope of insurance coverage and the latter one is out of the scope of insurance coverage,provided there is a direct chain of causation between them,the former cause is regarded as the proximate cause and the insurer shall be held responsible for the loss or damage.,If the former cause is within the exclusion of the coverage and there is a direct chain of causation between the former and latter cause,the proximate cause is considered out of the scope of insurance coverage and the insurer need not be held responsible for the loss or damage.,21,6.1.5 The Subrogation Principle,Definition,When the loss of the property insured is caused by a third party,the insurer is automatically entitled to compensation from the third party after indemnification has been made to the insurant.,The right of subrogation is exercised either in the name of the insurer or that of the insured.,The amount recovered,The amount recovered shall be limited to the amount of the claim paid under the insurance.,If the insurer may recover more than the amount paid by him as a claim,he must pass the surplus proceeds to the insured.,22,6.1.6 The Share Principle,Definition,Under the circumstance of double insurance,all the insurers shall,jointly bear the loss on the subject matter and share the loss according to their respective insurance proportion.,Double insurance,the insured has the risks covered by two different insurance companies upon the identical interest in the identical subject matter.,Each insurer is normally only liable,in case of total loss,to pay the insured to the extent of the sum written against his own name(the amount of his subscription),in case of partial loss,some proportion of that sum.,23,6.2 Marine Risks and Losses,Perils of the sea,海上风险,External/Extraneous,risks,外来风险,Risks,风险,Natural calamities,自然灾害,Unexpected accidents/,fortuitous accidents,意外事故,General risks,一般外来风险,Special risks,特殊外来风险,24,6.2.1 Marine Risks,Two types of risks,Perils of the sea,Natural calamities,Caused by,force majeure events such as heavy weather,lightening,Tsunami,earthquake,volcanic eruption,thunderbolt,etc.,Unexpected accidents/fortuitous accidents,Caused by accidents such as fire,explosion,vessel being stranded,grounded,sunk or capsized,collision,missing,etc.,25,6.2.1 Marine Risks,External risks/extraneous risks,General risks,Caused by common factors such as theft,fresh water rain,shortage,leakage,clash and breakage,odor,heating and sweating,hook damage,rust,breakage of packing,etc.,Special risks,Caused by military factors,political factors,government regulations such as war,striking,confiscation,etc.,26,6.2.2 Marine Losses,Total loss,全部损失,Partial loss,部分损失,Losses,损失,Actual total loss,实际全损,Constructive total loss,推定全损,General average,共同海损,Particular average,单独海损,27,6.2.2 Marine Losses,Two types of losses,Total Loss,:loss of the entire value of the subject matter,Actual total loss,cargo has been totally lost or has been damaged to the extent that it has lost its original usage,Constructive total loss,cargo is not totally lost,but the actual total loss shall be unavoidable or the restoration fees together with other miscellaneous expenses will exceed the anticipated amount of profit.,28,6.2.2 Marine Losses,Partial Loss,:a partial damage to or the total loss of part of the insured cargo.,Particular average,A partial loss of the subject matter insured caused directly by a peril insured against,No other cargo sacrificed to save the voyageThe owner who suffered the damage refer to the insurance company provided his policy covers the specific loss.,General average,A partial&deliberate sacrifice of the ship,freight,or cargo,or additional expenses incurred to rescue a ship and its cargo from impeding danger or for the common safety of the adventure under a peril of the sea or some other hazards.,29,General Average,Conditions for general average,Danger threatening common safety materially exists,not foreseen.,Measures shall be taken deliberately&reasonably for common interest,aiming to remove the common danger of both vessel and cargo,Sacrifice shall not be caused by perils directly,Sacrifice is specialized&expenses are additional,not within operation budget,Actions shall be successful in saving the voyage,30,General average,G.A.Contribution,The party suffering G.A.is entitled to a ratable contribution from the other parties interested.,Two kinds of general average loss:,Sacrifice of part of the vessel or cargo,Expenses incurred,Loss&expenses shall be shared among carrier,cargo owners in proportion to their respective interested value benefited from the G.A.,31,General average,The calculation of G.A.Contribution,To identify the total general average loss.,Total GA loss=the sum of sacrifices+the extraordinary expenses,To identify the total general average contributory value.,The contributory value refers to the value of property saved as the result of the general average act.,Total GA contributory value=the actual value of the property saved+GA loss,excluding additional expenses,To calculate the general average percentage.,To specify the individual general average contribution of all parties concerned.,GA Contribution=Contributory Value GA percentage,32,General average,Illustration,Suppose a cargo vessel loaded with cargo of Party A and Party B stranded in transit.To save the vessel as well as the goods on it,the master ordered to throw 1000 cases of goods to the sea.The value of the goods thrown overboard for Party A is 20%of his goods(the total value of his goods is CNY20230)and that for Party B is 10%of his goods(the total value of his goods is CNY60000).Extra wages for the seamen to perform the act amounted to CNY5000.The value of the vessel is about CNY5000000.Based on the information above what is the G.A.contribution for each party involved?,33,General average,Calculation:,Total GA loss=20230 x 20%+60000 x 10%+5000,=CNY15000,Total GA contributory value=20230 x 80%,+,60000 x 90%,+5000000+20230 x 20%+60000 x 10%,=CNY508,0,000,GA percentage=(Total GA loss/Total,GA,Contributory,value,)x 100%,=(15000/508,0,000)x 100%=0.295%,G.A.Contribution by Party A=20230 x 0.295%=CNY59,G.A.Contribution by Party B=60000 x 0.295%=CNY177,G.A.Contribution by the Carrier=5000000 x 0.295%,=CNY14750,34,General average,Governing Rule,the International General Average Rules 2023(also referred to as the,York-Antwerp Rules 2023),.,Differences between GA and PA,Causes,PA is usually caused directly by sea perils,GA is caused by intentional measures taken to save the common interest.,Indemnification,PA is often borne by the party whose cargo is damaged,GA should be proportionally contributed among all parties benefited from the intentional measures.,35,Case study,Case 1:,A vessel collapsed with flowing icebergs on the sea and a crack was founded on one side of the vessel.Sea water flooded in and part of the cargo was wet.The captain had to call at the nearest port to drain off water and afterwards threw off some bulky goods into the sea to make the vessel floating.Which part belongs to general aver