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Press Release
MOF draft standard contract for port loading and unloading
- Date2016-04-06
- Hit1,299
On April 6, the Ministry of Oceans and Fisheries announced that it had drafted a "standard contract for port loading and unloading," in order to ensure the fair and transparent contract for port loading and unloading through standardization.
Ports are the country’s primary national logistics infrastructure, handling over 99% of the country’s total imports and exports. The loading, unloading, storage and transportation of cargo play a central role in the port logistics industry, with 455 logistics firms currently in operation.
However, the disparity of contracts for loading and unloading depending on the conditions and bargaining power of each port, and the lack of a standard contract specifying the rights and duties of port-related stakeholders have resulted in continuous problems in handling import and export cargo.
Against this backdrop, the Ministry of Oceans and Fisheries came up with a standard contract for port loading and unloading, following numerous discussions with shipping companies, shippers, and loading and unloading companies since May of last year.
This standard contract will clearly define the rights and duties of shipping companies, shippers, and loading and unloading companies, in order to ensure the safe and swift loading and unloading of cargo at ports. According to the contract, loading and unloading companies are not allowed to cease loading or unloading without justifiable reasons; must complete all work within the given laytime of a vessel; and pay demurrage charges corresponding to the days of delay if any delay occurs.
In addition, shipping companies and shippers must in principle pay the loading and unloading charges in cash within 30 days, and pay charges including delay interest if they fail to make the payment on time.
Also, shipping companies or shippers must not request improper financial or other advantages for reasons such as renewal of service agreement, and furthermore must specify the liability for compensation of related stakeholders.
The Ministry of Oceans and Fisheries expects that the introduction of the standard contract for port loading and unloading will facilitate the handling of import and export cargo so that it is undertaken in a more swift and precise manner. It is also expected to cut the costs of loading and unloading at ports by preventing improper bribery and by minimizing the loss or damage of cargo.
Ports are the country’s primary national logistics infrastructure, handling over 99% of the country’s total imports and exports. The loading, unloading, storage and transportation of cargo play a central role in the port logistics industry, with 455 logistics firms currently in operation.
However, the disparity of contracts for loading and unloading depending on the conditions and bargaining power of each port, and the lack of a standard contract specifying the rights and duties of port-related stakeholders have resulted in continuous problems in handling import and export cargo.
Against this backdrop, the Ministry of Oceans and Fisheries came up with a standard contract for port loading and unloading, following numerous discussions with shipping companies, shippers, and loading and unloading companies since May of last year.
This standard contract will clearly define the rights and duties of shipping companies, shippers, and loading and unloading companies, in order to ensure the safe and swift loading and unloading of cargo at ports. According to the contract, loading and unloading companies are not allowed to cease loading or unloading without justifiable reasons; must complete all work within the given laytime of a vessel; and pay demurrage charges corresponding to the days of delay if any delay occurs.
In addition, shipping companies and shippers must in principle pay the loading and unloading charges in cash within 30 days, and pay charges including delay interest if they fail to make the payment on time.
Also, shipping companies or shippers must not request improper financial or other advantages for reasons such as renewal of service agreement, and furthermore must specify the liability for compensation of related stakeholders.
The Ministry of Oceans and Fisheries expects that the introduction of the standard contract for port loading and unloading will facilitate the handling of import and export cargo so that it is undertaken in a more swift and precise manner. It is also expected to cut the costs of loading and unloading at ports by preventing improper bribery and by minimizing the loss or damage of cargo.
