THE GROWTH OF SEABORNE CONTAINERS CARGO

THE GROWTH OF SEABORNE CONTAINERS CARGO

The transport of goods by sea has grown exponentially in Brazil. According to ABRATEC the movement of containers in the port of Santos in 2014 was 2,374,426 TEUs (twenty-foot unity) the largest in Brazil, followed by Itajai, Paranagua, Manaus, etc. totaling the sum of 6,094,152 units handled.

These numbers could be more significant if Brazil were more aggressive in competing exporter enterprise market into the global supply chain with major international players. In this time of crisis, it is an excellent time for industry insight to lead their production to the foreign market, taking advantage of the higher exchange rate. Indeed, with some improvements in productivity, manpower training and the means of production, prioritizing innovation, technology and robotics, tends to reduce the marginal costs increasing profit outlook.

However, to play in the international trading, either in export or import one must have knowledge of the market, laws and bureaucracy that often vary by country. A previous advisory service or hiring a customs broker has enough relevance in negotiating international contracts and stages of clearance of goods exported or imported joint to the Customs. For exporters or importers who have little or no experience, the consulting service  is essential to streamline procedures and minimize risks.

In a hypothetical simple export operation, such as the sale of granite slabs in containers for the American market, it can become a nightmare for exporters. Let's take a glance at a common example; The exporter A sells polished granite plates, to be shipped in 03 containers twenty feet (03X20') to a B importer located in Texas, whose port of discharge or final destination is Houston as described in the letter of credit and bill of lading (B / L).

The sale terms of contract  was "FOB" (free on board in accordance with international INCOTERMS). In this case, the goods must be stuffed in containers at the cost and risk of the shipper / exporter, hire the road haulage and take to the port of shipment to be cleared by Customs. within the strict compliance of deadline set up by the maritime carrier.

Therefore, now close attention to the following procedures is required. If the goods are not released within the time limit (deadline) for whatsoever reasons, such as: of delay in clearance of cargo or even the load input of delay in loading port, this delay will be borne by the exporter and all costs arising from that. Such as storage fee of containers, collection of dead freight by the ocean carrier, fine for noncompliance with contractual period and change in the letter of credit by the issuing bank and the importer. However, if the delay or loss of the shipment took place by the ocean carrier fault, due to transfer or scroll shipment, they shall bear the costs.

Another important factor to note is regarding freight transportation insurance. Being a sale terms contract arrangement "FOB" means that the insurance shall be paid by the importer or  buyer, once it is their responsibility to hiring the ocean carrier and pay the insurance of the goods. However, these terms should be clearly defined in the contract of sale negotiated between seller and buyer. There are cases where despite the sale terms are "FOB" buyer asks the seller to hire shipping carrier under the conditions of  freight payable at destination.(freight collect)

The risk in this case to the exporter or shipper is, if the importer does not pay the freight or do not show up at the destination port to remove the goods, the exporter shall bear all costs and become supportive for billing purposes. Being, the ocean freight and insurance, although the selling arrangement was FOB, who hired the ocean carrier to undertake the transport of goods was the exporter. Brazilian law is very clear on this point when it says in LICC (introductory law to the civil code) on the art. 9, see below:

Art. 9.

To qualify and govern obligations will apply the law of the country in which they constitute.

With regard to bonds, the art. 9 of LICC provides that the law of the country where they constitute the same is to be implemented to qualify them and govern them.

If the contract of carriage was accomplished in Brazil, so the Brazilian law has jurisdiction to solve the conflict. Evidence of hiring this transport agreement is through the issuing of the bill of lading (B/L) by the maritime carrier agent. The matter is regulated by the commercial code Brasileiro, dated 1850, this is it, 25/6/1850 in his art. 578 which reads,

"Art 578 -.

The Bill of Lading will be signed and delivered within 24 (Twenty four) hours after completion of load ....

There is also additional legislation, in case the act 9.611 / 98 which deals with the multimodal cargo transport. The problem is imposed when there are conflict of law, where the call clause "Paramount" (main clause) in the  bill of lading, which usually points to the maritime carrier country law. For the B / L is governed by the international rules and conventions, namely, the Hague Rules, Hague-Visby, Hamburg rules. However, this is a subject that we will deal in the next post

  

Author details:

Paulo Sergio Silvano Oliveira

Lawyer / Consultant

Extension in maritime law (shipping, oil & gas, breakdowns, etc.)

"Expertise" in ports - having worked for 10 years in VALE ports.

Ship repair companies and maritime agencies.

e-mail: paulosilvano.juridico@gmail.com

Linkedin: BR.linkedin.com/in/paulosilvano

Blog: http://paulosilvano.blogspot.com.br

www.abreu-juris.com