Part C Further Reading

Passage One Commodity Features and Cargo Work

Commodity value

The value of the commodity shipped may influence the price payable for transport and subsequently the shippers' choice of transport mode. A major principle—maintained by carriers—of scheduled transport pricing is that high value goods should pay higher freight rates than low value goods. First, high value goods may withstand greater freight charges better than low value goods. Second, the cost of handling high value goods tends to be larger than that of handling products of less value in view of the fact that high value goods often require special handling, and speed of delivery is usually of greater importance to the shipper.

Physical form

Commodities and cargoes may be in solid dry form, or they may be liquids or gases. The physical state has clear implications for storing, handling, and movement of commodities. Different forms require different transport modes, means, and packagings. The physical form of a commodity will restrict the number of transport options available to the shipper.

1. Gases and liquids. They may be packed into containers or flasks, or alternatively be moved without packaging in pipelines and special carriers. When gas is moved in tanks aboard ships, it is often liquefied by low temperature. This is a highly specialized form of transport requiring not only expensive, purpose built carriers, but also special terminals and handling equipment. There are two forms of gas which are shipped by sea, LNG and LPG. The traditional liquid cargoes are mainly crude oil and its refined products, vegetable oils, various chemicals, and even water. Liquid cargoes must be shipped in liquid carriers, unless it can be contained in some form. In bigger lots liquid cargoes are carried loose in ships, i.e. they are pumped from tanks on shore through pipelines to tanks aboard the ship and vice versa. In smaller lots liquids and gases are stored and moved in containers or flasks. When packed in this way, the commodities may be regarded as dry cargo from a transport point of view.

2. Dry cargoes. They embrace raw materials, semi-finished, or finished goods, and do not require the same containment as gases and liquids. The type of commodity, the level of finishing, and the transport method will determine the need for packaging and storage requirements. Storage requirements will tend to determine the choice of transport method. Some commodities have to be kept frozen while others need refrigeration. Flowers need to reach the customers quickly, while other cargoes need adequate ventilation to avoid combustion. The shipper must choose a transport method which secures proper storage and speed of delivery. There are several international conventions as well as common practices that shipowners will have to follow to secure preferable handling of different cargoes aboard a ship. Packaging will also have to be considered relative to the transport method chosen. Some raw materials, like ores, need not be packaged at all. If finished goods are moved in containers, the packaging required is much less than if the goods are transported in individual cases.

Containment form

The containment will similarly limit the transport options. In general, commodities are either moved in bulk or as general cargo. Bulk and general cargoes are defined relative to their means of transport and the cargo mixed on board. Packaged general cargo cannot usually,at least not within economic limits, be carried in dry bulk carriers. Most finished goods are shipped as general cargo, while raw materials in bigger lots are usually bulk cargoes.

1. Bulk cargo. Bulk cargo consists of a single commodity and is usually carried loose. If a ship carries a homogeneous cargo lot which is not packed in any form, this is a bulk cargo:oil carried directly in tanks, grain carried directly in holds, or pig iron loaded directly in holds. Bulk cargo can be divided into liquid and dry bulk cargo. Liquid bulk cargo is carried in tankers. Most tankers are designed to carry crude oil or its refined products, such as fuel oils. The oil is carried in tanks. These are connected by a system of pipes to a central manifold.The cargo is pumped on board at the loading port by shore pumps. At the discharge port the ship pumps the oil ashore using her own pumps. Dry bulk cargo is carried in bulk carriers. The cargo is carried in self-trimming holds. Dry bulk cargo includes grain, iron-ore, coal, and sugar, and is loaded automatically by buckets on a conveyor belt system or through large tubes. Although the cargo stows itself, it is important to maintain the ship's stability and to make sure that the cargo will not move during the voyage. Dry bulk cargo is unloaded by huge grabs on cranes or by giant suction tubes.

2. General cargo. General cargo consists of a variety of goods and packed separately and mixed on board. General cargo can be divided into containerized, non-containerized, and refrigerated cargo. Non-containerized cargo presents most stowage problems because each commodity has its own type of packaging and characteristics. Goods may be in bags, bales, cases, or steel drums. Individual pieces of machinery may not be packaged at all. Other cargoes such as tobacco and rubber have a strong odor and will taint delicate cargoes such as tea and rice. Other cargoes such as cement and fertilizers are dusty and leave a residue behind them. General cargo is loaded by cranes and the ship's own derricks. Non-containerized cargo is carried in multi-deck vessels. To help with the problem of stowage many types of general cargo are now being put into containers of standard dimensions. Nowadays most of the general cargo is containerized. Containers are carried in specially designed container ships and loaded and unloaded by special cranes from the quayside. The containers are stowed both above and below deck. Perishable cargoes are carried in ships with refrigerated holds which are designed to keep food at the correct temperate and have sound ventilation systems.

Passage Two Tally Companies

Tally company

A tally company is specialized in rendering tally services to all shipping companies, shipping agents, consignees, and consignors, and continuously satisfies requirement of its clients. Tally work can be done by tally clerks from the tally companies on behalf of the cargo owner on shore and on board vessels, and sometimes the crewmember can tally cargoes for the shipping company. Tallying business is usually done when packaged cargoes and containers are loaded on and/or unloaded from the vessel, and when cargoes in containers for which the vessel is vanned and/or devanned.

Generally speaking, tally companies can provide upon entrustment such tally services as tally business for vessels of both domestic and international lines, international and domestic container trimming business, container vanning and devanning as well as tally, cargo weighing and measuring, loading and unloading supervision, verification of damage of cargoes and containers, and other services. The tally company normally should give a tally report after completing tallying the cargoes. The tally report produced is recognized to have the effect of third-party notarization and certain legal force.

Nowadays, container EDI data transmission system has been developed and used, as well as container export BAY picture for external transmission showing good corporate image and setting up perfect quality system. Tally companies can furnish the clients with fine, quick, and judgmatical tally services. Their working standard is accurate in number, appropriate in grouping, and rational in stowage, which provides a strong guarantee for the consignor to accomplish the transportation task. Tally services provided by the tally companies facilitate the sound development of the international and domestic ocean shipping and trade.

Tally papers

Being a notarization organization engaged in tally business, the tally company provides tally documents/papers which are recognized to have legal force and are important in defining the liabilities of the consignor and the consignee respectively during the process of claim and claim settlement in maritime transportation. Tally papers are the summary on tally.They are the important warrant for supervision of customs cargo, maritime affairs arbitration, insurance counterclaim, and inspection for import and export merchandises, and the valid claim criterion with force and effect to shipping companies, shippers, consignees, and other clients. The tally papers are an important basis for transacting customs procedure, and the basis to distinguish the responsibility of the shippers, ports, and shipping companies during delivery and taking delivery. Tally papers are also an important basis for adjusting draft by ship and arranging work by port.

The following are the examples of tally papers: Tally Sheet is an original counting record made by tallyman. Tally Sheet for Containers is an original counting record made by tallyman for containers. On-the-Spot Record is an original certificate recording the abnormality of the cargo on the spot. Daily Report is a list for the chief tally to notify the progress of the loading/unloading cargo to the ship. Overlanded/Shortlanded Cargo List is a document to certificate the over/short of import cargo. Damaged Cargo List is a document to certificate the original damage of import cargo. Outturn List for Containers is a document to certificate the over/short and damage of containers. Tally Certificate is a certificate of the entrusted party's confirmation, which is a basis for the tally company to settle accounts with a shipping company or its agents.

China Ocean Shipping Tally Company

With the approval of the Ministry of Communication of the PRC and under the charge of State Council, China Ocean Shipping Tally Company was founded on Sept. 1, 1961 and considered third-party fairness as its core value. Now this company is a subsidiary of COSCO Group, and a notarial and professional organization providing tallying services for international or domestic liners along with the import and export trade goods. Headquartered in Beijing, this company supervises over 70 branches at main opening ports throughout the country.

When accepting tally work, based itself on the stand of the third-party and strictly observing relevant laws and regulations, as well as industrial provisions and standards, this company provides independent, objective, and unbiased tally results for customers and relevant parties. Since its foundation to the present, this company has kept close relations with shipping companies, ports, and foreign trade enterprises, improved and raised the qualities of tallying, serving, and information, renovated its ways of service and methods of management, and played an important role in the promotion of development of China's shipping industry and port operation.

China Ocean Shipping Tally Company mainly focuses on the following business: tallying cargo on break-bulk cargo vessels, tallying containers on container vessels, tallying cargo during stuffing and/or stripping of containers, cargo measuring, weighing of bulk cargo, draftsurveying of bulk cargo carriers, supervising loading and/or unloading operations, freight forwarding, and cargo surveying and supervision in Hong Kong. All tallying fees and charges incurred by foreign vessels, ocean-going Chinese vessels, and other clients at home and abroad shall be collected by this company.

In particular, this company's main business scopes are as follows: counting the packages of cargo, examining damage to cargo during loading and/or unloading from the vessel;attending to formalities of signing cargo papers and of delivery and taking delivery of cargo, furnishing relevant tally papers according to the results of tallying; counting the number of containers and examining damage to containers; sealing containers, examining seals, counting the packages of and examining damage to cargo in containers and making out Container Load Plan (CLP) during vanning and/or devanning in all places; counting the packages of cargo, examining damage to cargo during loading and/or unloading from the railway wagon and/or the truck; supervising the discharging of bulk oil cargo from the tankship; business concerning tally papers and formalities when bulk cargo is loading and/or unloading from the vessel; draught survey and calculating the deadweight; assigning supercargo and/or tally clerks to engage in cargo control and tallying along with the vessel; supervising the cargo, notarization of delivery, and taking delivery of cargo; and other related business.