Article-26-UCP-600-On Deck", "Shipper's Load and Count", "Said by Shipper to Contain" and Charges Additional to Freight

a. A transport document must not indicate that the goods are or will be loaded on deck. A clause on a transport document stating that the goods may be loaded on deck is acceptable. 

A deck is a platform or a section of floor on a ship, most decks are open, without a roof, and positioned high on a ship, shipment of the goods on deck exposes the variety of risks such as sea-spray and wind, as well as the potential risk of being washed off or falling overboard due to bad weather conditions or inadequate lashing, apart from these there may be situation to lighten up the ship to save human as well by throwing the goods loaded on the deck of the ship.

A clause on a transport document stating that goods may be loaded on the deck is acceptable as it depends on the situation and decision of master of the ship to prioritize to save human’s life.

Refer Below image :

b. A transport document bearing a clause such as "shipper's load and count" and "said by shipper to contain" is acceptable.

Shipper's Load and Count - The term load and count is the notation on a bill of lading indicating that the contents (number of cartons) inside the refrigerated trailer were loaded and counted by both the shipper and carrier, the clause such as “shipper’s load and count” on bill of lading is acceptable.

Said by Shipper to Contain - This is a caveat clause applied to container-shipment transport documents, indicating that the carrier has no first-hand knowledge of what was loaded in the container.

c. A transport document may bear a reference, by stamp or otherwise, to charges additional to the freight.

Charges Additional to Freight - According to the International Standard Banking Practice if a credit indicates that costs additional to freight are not acceptable, a transport document is not to indicate that costs additional to the freight have been or will be incurred. However, if credit does not specifically prohibits charges additional to freight, a transport document may bear a reference by stamp or any other indications charges additional to freight.

An indication of costs additional to freight may be made by express reference to additional costs or by the use of trade terms which refer to costs associated with the loading or unloading of goods, such as, Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In and Out Stowed (FIOS).

Free In (FI) - The word “Free” means “Not included”, the shipper is responsible for the coast of loading goods onto the vessel for the international shipping overseas.

Free Out (FO) is the international shipping term in ocean freight that indicates that the consignee is responsible for the cost of unloading cargo from the vessel at the destination.

Free In and Out (FIO) is used in the ocean freight means that the carrier is NOT responsible for the cost of loading the goods onto the vessel and unloading from the vessel.

Free In and Out and Stowed (FIOS) is a shipping term for bulk cargo. This term stipulates that the consigner is responsible for the loading and stowing (secure storage of cargo on board a ship) of the cargo and the consignee for the unloading the same.

Demurrage and Detention

Demurrage’ charge levied by the port authorities for a failure to remove the goods within a specified time. Reason for this charge may be that the original bills of lading not received to clear the goods, due to short sea journeys, or presented documents are on hold at nominated bank, confirming bank or issuing bank counter due to discrepancies have been found and no disposal instructions received from presenter or the discrepancies not yet resolved. Detention refers to the charge that the merchant pays for the use of the container outside of the terminal or depot, beyond the free time period, usually shipping company gives 5 to 14 days free detention period.

Demurrage and detention charges are not an indication of costs additional to freight

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Chandan Kumar Yadav
My name is Chandan Kumar Yadav CDCS, CSDG, CITF, PGDIBO,AML-KYC, CCFE, MLIBF, CSF, 6SIGMA a trade finance professional with an experience of 11 years whereas worked with several stages of letter of credit, bank guarantee and on other payments methods of trade transactions such as documentary collection, open accounts, SBLC etc., I have a fair understanding of Trade Based Money Laundering as well, Blogging related to Trade Finance is my passion and I want to share which I know and learn from others, I have worked with Wells Fargo, Yes Bank Limited and Bank of America, India which helped me to gain knowledge, view of Trade Finance and importance of International Trade in world's economy. Trade Finance is thumping product, everyday we are learning something new so in order to keep learning I started this as one of the platform. . Let's Learn Together

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