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    Round Voyage Costing of General CargoContainers from Nhava Sheva to Middle East

    and back

    By

    Gururaaj Naikar

    PGDTL

    Submitted in partial fulfillment of the requirements for the PostGraduate Diploma in Transport and Logistics

    June 20, 2009

    TOLANI MARITIME INSTITUTESher-e-Punjab Society, Andheri East,

    Mumbai 400 093

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    Table of Content

    I. IntroductionI. Operations of NVOCCII. Revenues of an NVOCCIII. Expenses of an NVOCCIV. Profits and Losses of an NVOCCV. Conclusion

    Appendix A Sample MTO LicenseAppendix B Copy of Delivery OrderAppendix C Copy of NVOCC Bill of LadingAppendix D Copy of MTD

    Appendix E Table of THCAppendix F Table of Costs during ImportsAppendix G Table of Costs during ExportsAppendix H Sample Shipping BillAppendix I Sample of Indemnity Bond Required by a LineAppendix J Sample of Customs Continuity BondAppendix K Container Track RecordAppendix L Copy of Bill of EntryAppendix M Copy of Customs IGMAppendix N Copy of Customs EGMAppendix O List of CFSs at Nhava Sheva

    Appendix P List of MTOs registered at DGSAppendix Q List of MLO operating ships at Nhava ShevaAppendix R List of Major shippers on Nhava Gulf SectorAppendix S List of Major Freight Brokers at MumbaiAppendix T List of Major Freight Forwarders at MumbaiAppendix U Types of Containers in UseAppendix V Terms and Conditions of InsuranceAppendix W Conditions of Carriage

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    INTRODUCTION:

    Non-Vessel Operating Common Carrier (NVOCC). A cargo consolidator in oceantrades who will buy space from a carrier and sub sell it to smaller shippers. The NVOCC

    issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean commoncarrier, except that it will not provide the actual ocean or intermodal service.

    In this project we will be seeing the round voyage costing of general cargocontainers from Nhava Sheva to Middle East and back.

    OPERATIONS OF AN NVOCC:

    Goods moving in International Trade are often moved by more than one mode oftransport i.e. Road, Rail, Sea and Air. Under the conventional system of eachtransportation mode, the Shipper/Consigner has to enter into contract with each owner ofthese segments of the transport modes and deal with them separately for co-ordinationand for claims if any. This was time consuming and costly. With the MultimodalTransportation only one Agency known as Multimodal Transport Operator takes theresponsibility of performing all modes of transport. Thus it becomes easy for theShipper/Consigner to deal with one agency. These agencies are mostly renowned FreightForwarders (not C&F agent who are mainly Custom House Agents). They are also knownas NVOCC i.e. Non Vessel Owner Cargo Carriers who are authorized to issue their ownBills of Ladings.A non-vessel-owning common carrier that buys space aboard a ship to get a lowervolume rate. An NVOCC then sells that space to various small shippers, consolidatestheir freight, issues bills of lading and books space aboard a ship.

    It may be a person or company (often a forwarding agent) who does not own or operatethe carrying ship but who contracts with a shipping line for the carriage of the goods ofthird parties to whom he normally issues a house bill of lading.

    NVOCC may be a cargo consolidator of small shipments in ocean trade, generallysoliciting business and arranging for or performing containerization functions at the port.

    An NVOCC may be-Ship-ownersRoad operatorsContainer terminals (in which case they may be called terminal operators).WarehouseContainer freight stations (CFS) or group age or consolidation depotsContainer leasing organisations

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    Organisations like freight forwarders attending to packaging, customs clearance, import/export formalities, foreign exchange transaction and connected documentation.

    Types of Multimodal Transport Organisations (M T O)

    There are different types of organisations or enterprises functioning as MTOs, butessentially, they may be grouped under two categories.i) Vessel Operating MTOsIndividual shipping companies or groups of consortia of shipping companiesProducers/ exporters of certain commodities who are the major users of their ownmultimodal transport operations that operate with owned or chartered ships.ii) Non-Vessel Operating MTOs (NVO-MTOs)Freight ForwardersRoad Transport OperatorsRailways

    Operations of NVOCCs:

    The operation of NVOCCs begins when their marketing personnel confirms the inquiryabout the rate quotation. When the rates are confirmed the D/O is issued for emptycontainer. Once the D/O is received the containers are sent to factory of the shipper or tothe CFS as per the requirement of the shipper. The shippers then send the follow up forstuffing and also send the load list for the same.

    The container requirement for the shipper depends upon the type, dimension, and weight

    of the cargo. The container may be 20, 40, reefer container, flat rack container for ODCcargo. Once the requirement of the container is decided then the container is send forstuffing of the cargo. The stuffing of the cargo is done either at the factory of the shipperor at CFS by the line (NVOCC). If it is factory stuffing then the container is send directlyto warehouse of the shipper and all responsibility regarding stuffing of the cargo islooked after by the shipper.

    In the case of dock stuffing were goods are stuffed by the line, then the shipper sends hiscargo by his mode of transport to warehouse of the line at his CFS. In this case the linelooks after the stuffing of the cargo in the container as it is now their responsibility.

    When the container is loaded i.e laden container, it is then inspected by the customsofficials. After the inspection of the container by the custom house agents, the containeris sealed and the container seal number is given. The customs after inspection also givesthe LET EXPORT ORDER or shipping bill to the line. Once all these formalities arecompleted the lines takes the container to the port and offloads the container at thecontainer yard.

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    Once the container reaches the port the line provides form 13 along with vessel details tothe shipper. The line also submits the load list to vessel operator. Then follow up forloading is done. After this line prepares the B/L draft which is given to the shipper andthe B/L draft is released. The filing of EGM is done by the line.

    ROU

    Services by NVOCCs:

    The scope of services rendered by the NVOCCs is as follows:

    When goods are carried in containers and when full container loads (FCL) are offered bythe consignor, the packing is normally done by the consignor or freight forwarders orother agents acting on his behalf and the loaded containers are delivered by the consignorat the container yard (CY) used by the NVOCCs. Some NVOCCs also provide anancillary transport service between the Container Freight Stations (CFS) and the

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    consignor's premises for collecting such loaded containers. Such service is also madeavailable to the consignee's premises in the case of imports.

    In the case of FCL, the NVOCCs do not normally supervise the packing, but someNVOCCs have a packing advisory service in their organisation which is available to the

    consignor on request.In the case of less than container loads, (LCL) containers are usually packed under thesupervision of the NVOCCs or his agents at a groupage depot or container freight stationsand unpacked under similar supervision at the CFS in the country of destination. SuchCFS are usually set up adjacent to a marshalling yard (MY) for assembling containersnear the berth where the vessel which is to carry the containers is to be berthed, but ifthey are packed at the groupage depot of a freight forwarder, the packing may not besubject to supervision by the NVOCCs, who may treat the loaded containers as FCLcargoes.

    Many Container Freight Stations also function as inland clearance depots where customsinspection is carried out. The customs clearance, export/import formality, execution offoreign exchange transactions etc. are generally attended to by the consignor or his agentbut these functions are also performed by the NVOCCs.

    After having accepted the cargo from the consignor, the NVOCCs reserves space on thedifferent modes of transport concerned through his sub-contractors for the transport ofcargo to the final destination.

    After the goods are taken into custody at the Container Yard (CY) the NVOCCs isresponsible for their safe custody until they are delivered to the consignee. The NVOCCsor his agent supervises loading and unloading of the goods on or from each mode oftransport used in the chain in order to ensure their expeditious and smooth movement tothe destination.

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    TYPES OF CONTAINERS:

    Type Sizes (ft) Characteristics Typical uses

    Open Tops 20/40 Soft detachable roof tarpaulin or tilt

    Machinery requiring top loading andover height cargo.

    Half Heights 20/40 Soft detachable roof tarpaulin or tilt, halfheight

    High density cargoes such as ingots,heavy steelwork, drums.

    Flat racks 20/40 No sidewalls or roof (and ends may becollapsible)

    For out of gauge cargoes andrestricted loading situations.

    Platforms 20/40 Flatbed with corner castings. Limitednumbers of high ratedequipment

    Over-length cargoes and specialprojects.

    Fantainers 20/40 Extractor fan fitted Agricultural products requiringventilation e.g. onions, potatoes.Also used as a normal GP container.

    Highly Ventilated 20 Side vents along topand bottom rails

    Hygroscopic cargoes such as coffee,cocoa, tobacco and seeds.

    Top Ventilated 20 Side vents along toprail

    Hygroscopic cargoes such as coffee,cocoa, tobacco and seeds.

    Open Sides 20 Side gates and sidecurtains

    Agricultural products requiringventilation, livestock and sideloading.

    Bulk 20 Top loading ports anddoor discharge shoot

    Dry cargoes in bulk e.g. malt, sugaralso used as a normal GP container.

    Tank Containers 20 Tank within an ISOframe of various types

    Liquid cargoes in bulks includingfoodstuffs and hazardous.

    Refrigerated -Integral

    20/40 Refrigerated Integral 8'6" and 9'6"

    Refrigerated -Insulated

    20, (8 and86)

    Top & bottom endports and connects toships refrigerationsystem

    Reefer cargoes on specialized shipsoperating in ANZ and SAF Trades.

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    REVENUES OF NVOCC:

    Cargo-handling and Storage earnings -Crane and other cargo-handling equipment hire charges

    Cargo-handling operation chargesTransfer and movement of cargo charges.Warehousing charges.Rent for storageOvertime chargesMiscellaneous cargo related charges.Ship related earnings -Pilotage charges.Port duesWharfageTugs

    Mooring and dockingWater, electricity, telephone supplyMiscellaneousLand and Building chargesRent for areas rented outMiscellaneous incomeFinancial and Interest earningsInterest on depositsDisposal of assetsIncome from investmentsMiscellaneous

    Are NVOCC gross revenue calculated by the amount of House Bill of Lading and thenthe net Revenues are calculated by subtracting the containership lines carrier Bill ofLading from the Gross Revenue ?

    NVOCC Gross Revenue = Total House Bill of Lading Revenues

    NVOCC Net Revenue = Total House Bill of Lading Revenues Total Master Bill ofLading Cost

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    EXPENSES OF NVOCC:

    Port facilities and services used by ships -Pilotage, tugs, channels and basins

    Fixed marine facilities, buildings etc.Administration and general expensesWater, electricity, gas etc.DepreciationCargo-handling related expenses -Equipment operating costsRepair and maintenanceFuel, electricity etc.Storage of cargo costs, Depreciation on equipments etc.Land and building related costsMaintenance costs

    Depreciation and Administrative costsFinancial CostsInterest on borrowingsTaxes and duesLosses, Bad debs and write-offsAdministrative CostsGeneral administrationComputers and communicationsMarketing and InsuranceTravel, Security expenses, Miscellaneous etc.Apart from the above items, following factors are also considered while fixing the Port

    charges:Competition from other Ports in the area.Nature of the cargo e.g. dangerous cargoes, refrigerated cargoes, livestock, dirty cargo,oil, chemicals etc.Special facilities needed e.g. floating crane; lighters etc.Transport mode - break bulk, containers; palletised; RORO etc.Subsidies offered by the stateFlag discrimination - preferential berthing; favourable rates for certain flags etc.Currency - in local or hard currency like US$Agreement with shipper's councils / trade associationsValue of goods

    Labour rates and level of union activity.

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    PROFITS AND LOSSES OF AN NVOCC:

    Suppose a container is exported

    Nhava Sheva to Singapore

    Slot Charges: $ 50 Market Rate: $ 10Ground Rent: $ 10MISC: $ 5Total $ 65

    Therefore the container exported from Nhava Sheva is at a loss of $ 55($ 65 - $ 10)

    Singapore to Nhava Sheva

    Slot Charges: $ 200 Market Rate: $ 350Ground Rent: $ 15MISC: $ 5Total $ 215

    Therefore the container re exported from Singapore is at a profit of $ 135($ 350 - $ 215)

    Hence When the cargo is back in Nhava Sheva the Company

    has earned $ 70 ($ 135 - $ 55)

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    LIST OF CFS AT NHAVA SHEVA:

    CONCOR's Dronagiri Rail Terminal (DRT)Punjab State Container & Warehousing Corporation Ltd

    Seabird Marine Services Pvt. Ltd, CFS

    The NDR Group's Continental Warehousing Corporation

    Maharashtra State Warehousing Corporation

    Best Roadways Limited

    BLR India Pvt. Ltd

    Bay Container Terminal Pvt. Ltd Shirdhon Depot

    Hind Terminals Pvt. Ltd Dronagiri CFS

    Forbes Patvolks CFS

    Balmer Lawrie CFS, Dronagiri

    Maersk CFSAll cargo CFS A leading Logistics Service Provider

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    permitted to alter or vary these conditions in any way,

    "customer" includes, without limitation, all passengers and persons entering intotransactions with the Company and named as consignor on the consignment note,

    "goods" includes, without limitation, livestock and animals of all kinds, vehiclesincluding passenger vehicles, passengers' unaccompanied luggage merchandise andpersonal property of all kinds whatsoever, together with any packaging and the containerand/or vehicle in which they may be carried,

    "persons" includes firms and corporations, and

    "transaction" means any arrangement between a customer and the Company inconnection with any of those matters undertaken by the Company as referred to incondition 6 below.

    2. Reference to any statute or statutory provision includes a reference to that statute orprovision as from time to time amended, extended, re-enacted or consolidated and to allstatutory instruments or orders made under it.

    3. The headings in these conditions are for convenience only and shall not affect theirinterpretation.

    4. The Company is not a Common Carrier and does not contract as such.

    5. Any typographical, clerical or other error or omission in any sales literature, quotation,price list, acceptance of offer, invoice or other document or information issued by theCompany shall be subject to correction without any liability on the part of the Company.

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    Company's Obligations:

    6. The Company undertakes the carriage of passengers and the collection, carriage,loading, discharge, storage and warehousing custody and delivery of the goods solelyupon and subject to these conditions.

    7. Any advice or recommendation given by the Company or its employees or agents toCustomers as to the storage and transport of the goods is followed or acted upon entirelyat the Customer's own risk and accordingly the Company shall not be liable for any suchadvice or recommendation.

    Booking and Payment:

    8. All charges by the Company shall be the Company's quoted prices listed in theCompany's published price list current at the date of the transaction. All charges may bealtered by the Company at any time without giving notice to customers.

    9. Subject to condition 10, full payment is due when the Company confirms the booking.

    10. In all cases (previously agreed with the Company) where charges are not prepaid,

    goods will be accepted for conveyance only upon condition the customer remains liablefor payment of the amounts due for the carriage of such goods and all other chargesincidental to the collection, carriage, loading, discharge, storage, warehousing, custody ordelivery of the goods without prejudice to the Company's rights if any, against thecustomers or any other persons.

    Goods:

    11. The consignment note issued by the Company shall not be taken to evidence thecondition of the goods or the correctness of the declared nature, quantity or weight of theconsignment at the time it is received by the Company.

    12. The customer shall furnish a statement of the identity of any dangerous, hazardousand toxic goods entrusted to the Company and of the nature and danger involved byquoting the relevant UN packing group under which the goods are classified and the UNnumber together with the IMDG code where known and flashpoint where applicable.

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    Tremcards must accompany those goods for which they are required. Without prejudiceto the generality of the foregoing, customers must comply in all respects with the RoadTraffic (Carriage of Dangerous Substances in Packages etc) Regulations 1986. TheMerchant Shipping (Control of Pollution by Noxious Liquid Substances in Bulk)Regulations 1987, Merchant Shipping (Dangerous Goods and Marine Pollutants)

    Regulations 1990, Explosives Act 1875, The Dangerous Substances in Harbour AreasRegulations 1987 the Bye-Laws of the Port and Harbour from and to which goods areshipped and all other applicable laws in connection with the carriage of the goods.

    13. The Company shall not be obliged to carry or otherwise handle dangerous goods.

    14. Goods of a dangerous nature to the carriage whereof the Company has not consentedwith knowledge of their nature and character, may at any time be unloaded, abandoned,discharged, landed, jettisoned, destroyed, rendered innocuous or otherwise disposed of bythe Company without compensation, and without prejudice to condition 23 the customershall be liable for all damages and expenses directly or indirectly arising out of or

    resulting from such shipment whether or not the customer had knowledge or should havehad knowledge of the nature and character of the goods at the time of the shipment. If anygoods shipped with such knowledge and consent shall become a danger they may be dealtwith in like manner.

    15. All perishable goods refused by the person at the place to which directed, or directedto a place not known to the Company, its servants or agents, or not directed at all or notpaid for or not taken away within six hours of arrival if addressed to be called for, may beforthwith sold or otherwise disposed of without notice to the customer and withoutliability whatsoever on the part of the Company. Payment or tender of the net proceeds ofany such sale after deduction of freight charges and other expenses of the Companyincluding, without limitation, expenses in connection with the disposal of such goodsshall be released to the customer.

    16. The Company will have the right to inspect the contents of any parcel or package andwill not be bound to receive or forward any parcels or packages the contents of whichshall not be declared at the time of being tendered. The Company reserves the right torequire the unloading of the whole or any part of the load of any vehicle if in the opinionof the Company's employees or agents it is necessary so to do in the interests of safety orconvenience of handling and no liability is accepted by the Company in such event.

    17. All empties not taken away within thirty days after their arrival may be disposed ofby sale or otherwise. The Company shall have complete discretion in determining uponthe manner of the disposal, and shall not be bound to dispose of them in the manner mostfavourable to the customer. The Company will keep such amount of any proceedsobtained from the disposal of the empties in satisfaction of the Company's costs andexpenses in connection with the storage and disposal of the empties. The Company willaccount to the customer for any balance.

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    Company's Lien:

    18. The Company shall have a general lien against the owner of the goods for any moneydue from the customer to the Company and if any such lien is not satisfied within a

    reasonable time the Company may in its absolute discretion sell all or part of the goods asagent for the customer and apply the proceeds towards the money due and the expensesof retention insurance and sale of the goods and shall on accounting to the customer forany surplus be discharged from all liability whatever in respect of the goods.

    Customers' Safety:

    19. Customers shall at all times follow and carry out all lawful directions of the Master

    and/or crew members of the vessel, particularly in relation to (but not limited to) personalsafety of themselves, crew or other passengers.

    20. Customers are required to be seated when advised or requested to do so by the Masteror any crew member, for any reason.

    21. Customers are required at all times to take all reasonable precautions for their ownsafety and safety of any person in their care (particularly children). This includes but isnot limited to using hand and guard rails at all times as provided around the vessel,appropriately restraining children and ensuring that children are accompanied by aresponsible adult at all times and paying attention to the safety briefing given by crew

    members at the commencement of carriage.

    22. Customers are advised and required to take particular care in conditions of inclementrough or heavy weather or as advised by the crew.

    23. Notwithstanding the provisions of condition 26 below, neither the carrier, the vesselnor any crew member shall be held responsible for any loss or damage (includingpersonal injury) suffered by any person, as a result of breach of that person's safetyobligations (as detailed in these conditions and/or as otherwise advised by the Masterand/or crew members), or their failure to utilize all safety devices and precautions asprovided and/or advised on board the vessel, or caused by any passenger acting in an

    unreasonable, unnecessary or unsafe manner.

    24. The Master/Captain/Commander or any other authorized person will refuse to take onboard any vessel a person who in the Master's opinion may constitute a hazard either tothe safety of the vessel or to the safety of the other persons on board that vessel or who inthe Master's opinion may be a nuisance or annoyance to other passengers.

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    Liability:

    (a) The Company shall not be liable for any indirect or consequential loss suffered by thecustomer whatsoever.

    (b) The liability of the Company for death or personal injury resulting from negligence isnot excluded or restricted hereby.

    25. The Company shall not be liable for loss damage non-delivery or delay attributableto:

    (a) non-delivery or misappropriation of the goods where the Company has complied withany special instructions by the customer as to delivery,

    (b) act of God,

    (c) war hostile military action rebellion riot or civil commotion,

    (d) strike lockout or other industrial action,

    (e) any other act or omission of the Company which is beyond the reasonable control ofthe Company,

    (f) orders of any competent public authority,

    (g) lack of or defective or inadequate packaging,

    (h) handling loading stowage or unloading of the goods by the customer or the consignee,

    (i) the nature of the goods exposing them to total or partial loss or damage throughbreakage rust decay desiccation leakage wastage inherent or latent defect or vice ornatural deterioration,

    (j) insufficiency or inadequacy of addressing labeling or other markings or informationon the goods,

    (k) any other act or omission of the customer or consignee or any person for whom theconsignee is responsible.

    26. The Company shall not be responsible for any loss damage or delay unless thecustomer notified the Company in writing within 3 days of actual delivery.

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    27. The Company draws attention to the right the Company may have in appropriatecircumstances to limit liability, whether under the provisions of statute or otherwise andnothing in these terms and conditions is to be construed as a derogation of that right.

    28. In respect of claims arising on or after 1 February 1978 these terms and conditions areto be construed in such a manner as to afford the Company maximum protectionpermissible under the Unfair Contract Terms Act 1977.

    29. In accordance with The Carriage of Passengers and their Luggage by Sea (DomesticCarriage) Order 1987, the Company gives the following notice:

    (a) The provisions of the Athens Convention may be applicable; and

    (b) The Athens Convention in most cases limits the carrier's liability for death or personalinjury or loss of or damage to luggage (including a vehicle) and makes special provision

    for valuables; and

    (c) The Athens Convention presumes that luggage has been delivered undamaged, unlesswritten notice is given to the carrier:

    (i) In the case of apparent damage, before or at the time of disembarkation or re-delivery,or

    (ii) In the case of damage which is not apparent or of loss, within 15 days from the dateof disembarkation or re-delivery or from the time when such re-delivery should havetaken place.

    30. Customers shall be liable for any loss, damage or delay to the goods and to theproperty of the Company and of third parties and for personal injury or death to anypersons wheresoever such damage is caused or inflicted by the goods.

    31. General average (if any) to be settled in accordance with York-Antwerp Rules, 1974,or any subsequent amendment thereto.

    32. No employee agent independent contractor or sub-contractor of the Company shall inany circumstances whatsoever be under any liability whatsoever to the customer for anyloss, damage or delay of whatsoever kind arising or resulting directly or indirectly fromany act, neglect or default on his part while acting in the course of or in connection withhis employment but without prejudice to the generality of the foregoing provisions of thisclause, every exemption, limitation, condition, and liberty herein contained and everyright, exemption from liability, defence and immunity of whatsoever nature applicable tothe Company or to which the Company is entitled hereunder shall also be available andshall extend to protect every such servant or agent of the Company acting as aforesaidand for the purpose of all the foregoing provisions of this clause the Company is or shallbe deemed to be acting as agent or trustee on behalf of and for the benefit of all persons

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    who are or might be its servants or agents from time to time (including independentcontractors as aforesaid).

    Warranties and Indemnities:

    33. Customers entering into transactions of any kind with the Company expressly warrantthat they are either the owners or the authorized agents of the owners of any goods towhich the transaction relates and further warrant that they are authorized to accept andare accepting these conditions not only for themselves, but also as agents for and onbehalf of all other persons who are or may thereafter become interested in the goods.

    34. The customer shall pay to the Company the amount required to indemnify theCompany against any claim arising out of the custody or carriage of the goods inpursuance of or in connection with these conditions by any person or entity having aninterest in the goods and any costs and expenses associated with such a claim.

    Sub-contractors:

    35. The Company shall be entitled to employ or contract with the Railways otherShipping Companies or any other carriers or persons for any purpose of or incidental tothe collection, carriage, loading, discharge, storage and warehousing, custody or delivery

    of the goods. In so doing, the Company shall be deemed agents for the customers.

    36. Where customers booking include the carriage of goods or the travel of passengers byroad or rail then that part of the journey (provided it is not undertaken by the Company)shall be subject to the relevant carrier's terms and conditions and other relevant applicablelaws, copies of which are available on request.

    Delivery:

    37. Where the Company undertakes to arrange collection and/or carriage of the goodsprior to loading aboard the vessel or on carriage of the goods after discharge from thevessel such arrangements will always be made by the Company prior to loading aboardthe vessel or after discharge from the vessel.

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    Commencement and Termination:

    38. (a) The transit in respect of which a consignment note is issued by the Company shallcommence when the goods are handed to and accepted by the Company whether at the

    point of collection or at the Company's premises. For the avoidance of doubt, unlessotherwise previously agreed with the Company, any goods abandoned on any Company'spremises may be disposed of by the Company without compensation to the owner of thegoods and without any responsibility on the part of the Company.

    (b) The transit shall (unless otherwise previously determined) be deemed to end:

    (i) In cases where the Company has not undertaken to arrange on-carriage, when thegoods are discharged from the vessel, or:

    (ii) In cases where the Company has undertaken to arrange on-carriage (a) when the

    goods are tendered at the usual place of delivery at the consignee's address, or otheragreed place of delivery within the customary cartage hours of the district, (b) when uponarrival at the place of delivery, it is found that no safe and adequate access or no adequateunloading facilities there exist, (c) when for any other reason whatsoever a consignmentcannot be delivered.

    (iii) In cases where the Company has undertaken to arrange on-carriage but no on-carriage is available, the transit shall be deemed to terminate on arrival of the goods at theCompany's wharf or depot. Any money received by the Company in respect of the

    intended on-carriage shall be held in trust for the customer and may be appropriated bythe Company to payment, in part or in full, of any additional expenses by the Company.

    (iv) In cases where a consignment is held by the Company "to await order" or "to be kepttill called for" or upon any like instructions and such instructions are not given, when theconsignment is not called for and removed within thirty days.

    39. When the transit has come to an end by virtue of Clause 40 above the Company maysell the goods (although the Company shall not be obliged to do so) and payment ortender of the proceeds after deduction of all proper charges and expenses in relationthereto and all outstanding charges in relation to the carriage and storage of the goods

    shall discharge the Company from all liability in respect of such goods, their carriage andstorage. Whether or not the Company elects to sell the goods the owners shall be liablefor all additional expenses or charges of whatsoever nature incurred after the transit hascome to an end.

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    40. English Law shall apply to any transactions between the Company and customersunder these conditions and the parties shall submit to the exclusive jurisdiction of theEnglish courts.