General

The giant freighter "Long Give", which made hundreds of ships impassable and interrupted global trade, was finally able to leave the Suez Canal after about three months of seizure.

This means that after waiting for 3 months, the buyer is finally expected to receive the goods!

Confidentiality of compensation amount

According to a Reuters report on the 5th, the Suez Canal Authority stated on the 4th that after more than three months of negotiations, the Japanese shipowner Masaei Steamship Company finally reconciled with the Suez Canal Authority and announced that the Nagagi was on July 7. After signing the settlement agreement, you can leave the Suez Canal.

The points of divergence in the previous negotiations mainly focused on the compensation required by the Suez Canal Authority for rescued ships. At first, the Authority asked for compensation of US$916 million, which was later reduced to US$550 million.

The Director of the Administration said in June that the two parties had reached an agreement on the amount of compensation. But he said that because the two parties signed a confidentiality agreement, more details will not be made public until the final contract is signed.

The Wall Street Journal quoted people familiar with the matter in June as revealing that the initial agreement reached by the two parties for compensation has been reduced to approximately US$200 million.

Although no one knows what the final figure is, but it is certain that the money needs to be borne by the cargo owners. Because on April 1, the Japanese shipowner of the Long Grant, Masaei Steamship, has officially declared general average.

According to the analysis of professionals, the general average of this accident may be the highest in history.

What is general average?

In layman's terms, general average is-the ship is in an accident, and although your cargo is fine, you have to share the losses of others together.

Consignor owner: Why? The shipping company should bear it.

· Shipping company: Since ancient times, we have not been responsible.

Why? The shipping company should bear it.

Since ancient times, we have not been able to bear it.

Shipowner

Generic Average (GA) is one of the ancient and special legal systems. It originated from the rules of maritime customary law. In the early days, it was common when the ship encountered natural danger when the ship was sailing. The captain took some measures such as dumping the cargo and cutting the mast. The basic principle is that the beneficiaries shall share the general average loss suffered by one (or more) parties in proportion to the value of their respective beneficiary properties.

In other words, if the shipping company announces a general average, the shippers cannot deliver the goods without providing guarantees.

The general average amount to be shared by the ship and the cargo owner is calculated by the average adjuster based on the destination value of the ship and the cargo, and the ship owner has a lien on the cargo under his control.

However, due to the complicated process and long time required for adjustment, the shipowner cannot always hold the cargo of the cargo owner. At this time, it is necessary for the cargo owner to provide a joint average guarantee to the average adjustment company, which is equivalent to the cargo owner’s commitment and will work together. Bear general average.

At this time, cargo owners who have bought insurance must contact their insurance company, and the cargo insurer will sign the “Average Guarantee”; while cargo owners who have not bought insurance need to provide cash guarantees (at this time there is no The consignor who bought the insurance entered the pit, and I don’t know that this guarantee can be taken back in the year of the monkey).

So at this time the importance of shipping and buying insurance has once again appeared.

Did the Chinese cargo owners really lose money in the hardest hit areas?

It is reported that the full cargo capacity of the Long Ci is 20,000 containers. This time it carried 18,300 containers. It sailed from Kaohsiung Port to Rotterdam Port. It was nearly full. The total value of the cargo on board was about 3.5 billion U.S. dollars. The ship has called Qingdao, Shanghai, Ningbo, Taipei, Yantian and other ports successively.

It is estimated that 80% of the cargo on board comes from China. Domestic media reported that the "Changci" freighter was loaded with more than 3,000 standard containers from Yantian Port in Shenzhen.

The stranding of the ship "Longci" has aroused heated discussions in the maritime community, but the views are mostly from the perspective of the shipowner, time charterer, the P&I Club, and the Egyptian Canal Authority. As a major trading country, my country is especially a major exporter of containerized goods. If there is no discussion of the impact of the "Long Gift" incident on Chinese exporters from the perspective of risk transfer in international goods sales contracts, then Chinese exporters may become the "takers" of the accident.

Therefore, under the assumption that the seller of the goods has not breached the contract, this article puts forward several points of view on the transfer of goods risk in the international sales contract for the sale of goods, for reference only.

The transfer of risk in the international sale of goods is an issue concerning the major interests of both buyers and sellers. The International Chamber of Commerce "General Rules for the Interpretation of International Trade Terms" (Incoterms) has made a detailed agreement on the time and place of risk transfer under trade terms, and the "United Nations Convention on Contracts for the International Sale of Goods" (CISG) has also made complete provisions on risk transfer.

The "General Rules for the Interpretation of International Trade Terms" (take Incoterms2010 as an example) mainly include FOB, CFR, and CIF. These terms all stipulate that the buyer bears the risks of the goods in the transportation process, that is, the goods are shipped from the ship. From then on, the risk is transferred to the buyer. If the FOB, CFR, and CIF price terms are stipulated in the international goods purchase contract, the general average of the goods that should be borne by the "Longci" ship grounding will be borne by the buyer, and the buyer has no right to refuse payment on the grounds that the goods have not been received.

If international trade terms are not used in the contract for the international sale of goods, will Chinese sellers bear the losses? not always.

my country is a party to the United Nations Convention on Contracts for the International Sale of Goods, and major European countries are also parties to the Convention. Contracts for the international sale of goods often apply the law of one of the contracting states as the applicable law, and the "United Nations Convention on Contracts for the International Sale of Goods" is part of the laws of that contracting state, so the convention is applicable. According to the provisions of Article 67 of the Convention, if the international contract for the sale of goods involves the transportation of goods and there is no agreement to deliver the goods at a specific location, then the goods are delivered to the first carrier in accordance with the contract for transportation to the buyer. Transfer to the buyer, even if the seller keeps the documents (such as bill of lading, etc.) for the disposal of the goods, it will not affect the transfer of risk. For example, if an exporter in Shenzhen loads the goods on the "Longci" vessel in accordance with the international goods sales contract, from then on, he will not bear the risk of damage, loss, or delay in reaching the destination port.

Attachment: The division of responsibilities between buyer and seller under various trade terms

This form can be sent to the buyer. It clearly states under which trade terms, whether the seller or the buyer should buy insurance. Exporters who are FOBs can also remind buyers to buy insurance, and don't be greedy for small gains and make big losses.