Workshops on Bills of Lading, Multimodal Transport, Maritime Chartering, and Cargo Insurance

T. O. Lee's
INTERNATIONAL
TRADE SEMINARS
on

Bills of Lading
Multimodal Transport Documents
Maritime Chartering
Cargo Insurance

Workshop Leader:

Mr. T. O. Lee FAE, MCIArb, MITD

"A brief discussion with Mr. T.O. Lee will convince you of his expertise on International Trade particularly for his knowledge and experience in maritime chartering, multimodal transport, marine cargo insurance, trade frauds, the China Trade, mediation and arbitration."

Charles del Busto - Chairman of ICC Banking Commission (1990 - 1996)

Dear Friends,

The road between the exporters and the importers is littered with watermelon skins, banana skins (very slippery), potholes and even landmines! We have many documented cases of how exporters and importers had lost millions of dollars due to ignorance of the risks, traps and pitfalls in international trade.

"If you know the enemy and know yourself, you need not fear the results of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat"

Sun Tzu – The Art of War

Therefore, to avoid risks, traders must armed themselves with a wealth of practical knowledge on documentary credits, incoterms, transport documents, chartering, trade frauds and cargo insurance.

T.O. Lee's International Trade Seminars Series is an unique, and innovative training and development programme on international trading techniques not available in the market before. All workshop materials are specially written based on trade dispute cases from Mr. T. O. Lee's consultancy work file. They are pragmatic, risks focused and applicable in participants' works environment immediately to bring the desired results. The speaker is known in the training and development arena to be inspiring, persuasive and loaded with humours.

WHO SHOULD ATTEND

Bankers, Exporters, Importers, Shipping/Logistics Supervisors and Managers, China Traders, Marketing Executives, Forwarders, Lawyers, Auditors and Finance Controllers.

Module 1
HOW TO AVOID BILLS OF LADING BEING REJECTED BY THE ISSUING BANKS?

DO THE FOLLOWING SITUATIONS APPLY TO YOUR COMPANY?

Your payments under LCs are frequently delayed or unpaid because of discrepancies in the bills of lading.
The freight forwarder who prepares the documents for you blames the banks for being too strict.
Your staff told you that this is quite normal and everybody has the same problem.
Sometimes you strongly object to the reasons given by your bankers in refusing your bills of lading but you do not know how to convince them.
No matter what your staff do, they cannot satisfy the bankers for their requirements on bills of lading.
You state clearly the true information about the place of receipt and port of loading but your banker advises you to change them to non-factual ones if you wish to get paid. You are frustrated and wonder why you are penalized for your honesty?

COURSE OUTLINE

The special features and functions of Marine/Ocean Bills of Lading.
The different purposes served by "Bearer", "To Order" and "Straight" Bills of Lading.
Effective Endorsements of Bills of Lading.
Different kinds of Bills of Lading for specific applications.
The main difference between Marine/Ocean Bills of Lading and Charter Party Bills of Lading.
The risk from certain Freight Forwarders.
What are Master Bills of Lading, House Bills of Lading, Memo Bills and Switched Bills of Lading?
What kind of Bills of Lading issued by Freight Forwarders would be accepted by Issuing Banks?
What is the story behind "Freight Prepaid As Arranged"?
What are the problems from "Bill of Lading for Port-to-Port Shipment and Multimodal Transport"?
Common Discrepancies in Bills of Lading and how to avoid them?
The correct interpretation of UCP 500 Article 23 and the ICC Position Paper No. 4.
Case Studies.

Duration: Half-day workshop

Module 2
THE IMPACTS OF TERMS & CONDITIONS IN BILLS OF LADING TO SHIPPERS & CONSIGNEES

DO THE FOLLOWING SITUATIONS APPLY TO YOUR COMPANY?

Your claims to the Carriers are sometimes denied relying on some unreasonable Disclaimer Clauses at the back of the Bills of Lading.
Your claim is not entertained because it is not made according to the right procedures.
You became a yo-yo because both the Carrier and the Insurer told you that they were not responsible for your damages.
You hear different advices from the Carriers and you do not know which version is the correct one.
You often ship the goods directly to the Applicant and send him one original Bill of Lading as instructed in the L/C.
You do not understand the jargons used at the back of the Bills of Lading and your freight forward tells you that you don't have to be bordered by them.

COURSE OUTLINE

What International Rules and Conventions are Bills of lading subject to?
What are the rights and responsibilities of the Carrier in Bills of Lading?
What are the rights and responsibilities of the Shipper, the Consignee and the Holder?
What basic terms and conditions that must be present in a Bill of Lading?
What are the difference between a Through Bill of Lading and a Multimodal Transport Bill of Lading?
The common Disclaimer Clauses in Bills of Lading.
What Disclaimer Clauses are not unfair and may violate certain local legislations?
What rules to govern claims settlement? How are settlement computed? and what are the maximum limits of claims?
What are the causes of action for suing the Carrier? When the Consignee would lose his right of suit?
What should the Consignee do if the original bills of lading are lost?
If two parties claim that they have the right to the cargo, what should the Carrier do?
How many ways can a Consignee claim against the Carrier or the Shipowner?
Case Studies.

Duration: Half-day workshop

Module 3
MULTIMODAL TRANSPORT DOCUMENTS – ITS EFFECTIVE USE IN INTERNATIONAL TRADE

DO THE FOLLOWING SITUATIONS APPLY TO YOUR COMPANY?

It is difficult to prove who did the damages in Multimodal Transport.
When the cargoes arrive damaged, all the different carriers claim that they do not cause the damages.
The Freight Forwarder who handles your cargo claims that he is a mere agent and is not responsible for the damages.
Nobody knows where the cargo is located after the voyage is broken by a force majeure incident.
The different carriers do not wish to respond to your inquires or claims because they do not have any contractual relationship with you.
In settlement of your claims, you receive much less payment than in the case of maritime transport.

COURSE OUTLINE

What are the essential elements and special features of Multimodal Transport?
What are the benefits of Multimodal Transport over conventional Maritime Transport?
Why bankers still insist on the use of Marine/Ocean Bills of Lading in L/C operations?
What are the benefits and protection from FBL Negotiable FIATA Multimodal Transport Bill of Lading?
What is the significance of the ICC Logo in a Multimodal Transport Bill of Lading?
ICC and HAFFA Information on FIATA Licensees.
What are the risk areas of "Negotiable Bill of Lading for Port-to-Port Shipment or Multimodal (Combined) Transport Shipment"?
How to meet the requirements of ICC UCP 500 Articles 26 and 30?
How to comply with ICC Position Paper No. 4?
Case Studies

Duration: Half-day workshop

Module 4
WHY YOU HAVE TO CHOOSE ICC/UNCTAD RULES FOR MULTIMODAL TRANSPORT DOCUMENTS TO PROTECT YOURSELVES?

DO THE FOLLOWING SITUATIONS APPLY TO YOUR COMPANY?

The transport decisions are made by your buyer who knows nothing about the situation at your end.
You think all transport rules are more or less the same and none of them can protect you.
You start looking at the terms and conditions of carriage only after your claims have been denied.
Your lawyer does not know too much about Multimodal Transport. His legal opinions are based on general legal principles, which do not offer much help.
You think that "door to door" delivery must be Multimodal Transport.
You are not aware that claims should be met at different rates according to the modes of transport used.

COURSE OUTLINE

Understand the inconsistency between the UCP 500 and the ICC/UNCTAD Rules for Multimodal Transport Documents.
Who is the Carrier in Multimodal Transport? And what are his responsibilities?
What are the rights and responsibilities of the Shipper in a Multimodal Transport?
After the Bills of Lading have already been transferred to the Consignee, is the Shipper still liable to indemnify the Multimodal Transport Operator?
The definition of goods is different in Multimodal Transport compared with Maritime Transport and its impacts to exporters and importers.
Is the Multimodal Transport Operator also not responsible for the acts and omission of his servants or agents, like in Maritime Transport?
Is the deadline for claims also the same as in Maritime Transport?
What are the impacts to claims if Maritime Transport is involved?
What are those risks that are not being covered by the Rules?
How would you cover those risks?
Under which conditions may the goods be treated as lost?
What is the vacuum area in Multimodal Transport where no body, including the insurer, is responsible for the lost or damage of the goods? How to remove such vacuum area?
Case Studies.

Duration: Half-day workshop

Module 5
THE PRACTICAL ASPECTS AND RISKS OF MARITIME CHARTERING TO EXPORTERS & IMPORTERS

OBJECTIVE

To ensure the operations staff of Logistic and Documentation Departments:
Understand how the different kinds of maritime charters work out and which is the most suitable charter to meet their needs.
Walk through the different charter parties designed by the commodity brokers associations and choose the right one specifically for their own commodity trade.
Have a thorough understanding of the jargons used in charter parties and their impacts to their businesses.
Aware of the latent risk areas of maritime chartering.
Understand the rights and responsibilities of the parties: shipowners, masters, ship brokers, agents, charterers and Holders of Bills of Lading.
Know how to resolve disputes with the parties effectively.
Know how to enforce their rights by admiralty jurisdiction, including action in rem (arrest of ships).

COURSE OUTLINE
Rights & Obligations of Parties The Carrier/Owner The Shipper/Consignee/Holder The Agent, Broker & Master Charter Parties Characteristics of Charter Operations Voyage Charter Contract of Affreightment Time Charter Bareboat/Demise Charter Popular Charter Parties	Highlights of the "ASBATANKVOY" Charter Party Preamble Part I Part II Overriding Clauses Chamber of Shipping War Risks (Tankers) 1952 Clause Paramount USA Clause Paramount Amended Jason Clause Both-to-Blame Collision Clause Popular Jargons/Abbreviations in Charter Parties Related Articles

Duration: One-day workshop

Module 6
BETTER KNOW YOUR CARGO INSURANCE POLICY BEFORE YOUR CLAIMS ARE DENIED

DO THE FOLLOWING SITUATIONS APPLY TO YOUR COMPANY?

Your broker tells you there is only one option to be chosen.
All the bonuses, benefits and privileges promised by the salesman are not recognised by the insurance company and that salesman now works for another company.
You are not so sure whether you are also buying something that you never ever need.
You do not know why your competitor's insurance costs are much lowered than yours.
You always try to save premium by making false declaration and you think it is OK.
Do "all risks" insurance really covers all the risks?

COURSE OUTLINE

The differences between life insurance and cargo insurance.
What are the main differences amongst cover note, policy, certificate of insurance, open policy, floating policy and declaration under an open cover under UCP 500 Article 34 (d)?
The basic rights and responsibilities of the insured, the insurer, the beneficiary and the holder.
What are the basic constituents of an insurance policy?
What are the legal strengths of terms and conditions written in printed text, in margin, by typewriter and by hand? What if there are conflicts or inconsistencies amongst them?
The different roles insurance company, underwriter, broker, consultant and agent play and their impacts to importers and exporters.
How to interpret the dead languages used in insurance policy? Why they cannot be changed?
What some insurance jargons really mean and their impacts to your claims?
The special features of Institute Cargo Clauses and how to choose the right endorsements to match the special needs of your trade?

Duration: Half-day workshop

Module 7
HOW TO USE INSTITUTE CARGO CLAUSES TO INCREASE YOUR SUCCESS IN CARGO CLAIMS?

DO THE FOLLOWING SITUATIONS APPLY TO YOUR COMPANY?

Firstly you are told that every risk is covered but later you are told that the risks under claims are unfortunately not covered.
You strongly disagree with the reasons for rejection of your claims but you don't know how to argue.
The executive who buys insurance is not, and seldom talks to, the one who claims insurance.
You do not know that the policy will terminate automatically in a situation when you need that cover most.
Your claim has been turned down just because you have missed out a minor procedure.
Payment of insurance premium, like other routine payments, may sometimes be delayed.

COURSE OUTLINE

What the insured should do in order to avoid claims being rejected?
What are the priorities that will be used to determine whether to accept or to deny your claims?
How to collect favourable evidences to support your claims? How to make claims settled in a shorter period of time?
How to draft claim documents to match insurance claim settlement priorities and to reduce delays in settlement?
How to handle insurance cover in back-to-back L/C and transferable L/C?
How to avoid discrepancies in insurance documents in L/C operations?
Why under certain circumstances, after a fire, a policy covering fire risks cannot get paid?
What are the time bars for claims? Why are time bars necessary?
If your insurance claims have been denied, how to recover your losses by other alternatives?
Learn from some marine cargo claims case studies.

Duration: Half-day workshop

What Others Have To Say
"Mr. Lee's presentation is thought provoking and original in its content. It brings to light not only problems with documentary credits, but also solutions that you could obtain only from practical experience working in the field. I highly recommend it to both bankers and traders who are serious about letters of credit". Jacob Katsman - Managing Editor, LC Monitor, Canada "Most comprehensive information in the handouts, inspiring presentation, professional in every respect, introducing the latest international trade fraud cases with in-depth analysis". S.C. Kwok - Vice President, Citibank, Hong Kong "Clear and focused line of thoughts, lively presentation, experienced in handling questions, lots of case studies from the speaker's own work file to share with us". Ding Bo - Director, Zhum Heng Development Ltd., Guangdong Group, Hong Kong "Handouts are clear, concise and focused, with lots of real life cases to reflect the current trading environment and the important changes in the market place". Kenneth Y.M. Lee - Senior Consultant, Bank of Communications, Manhattan, New York, USA

What Others Have To Say

"Mr. Lee's presentation is thought provoking and original in its content. It brings to light not only problems with documentary credits, but also solutions that you could obtain only from practical experience working in the field. I highly recommend it to both bankers and traders who are serious about letters of credit".
Jacob Katsman - Managing Editor, LC Monitor, Canada

"Most comprehensive information in the handouts, inspiring presentation, professional in every respect, introducing the latest international trade fraud cases with in-depth analysis".
S.C. Kwok - Vice President, Citibank, Hong Kong

"Clear and focused line of thoughts, lively presentation, experienced in handling questions, lots of case studies from the speaker's own work file to share with us".
Ding Bo - Director, Zhum Heng Development Ltd., Guangdong Group, Hong Kong

"Handouts are clear, concise and focused, with lots of real life cases to reflect the current trading environment and the important changes in the market place".
Kenneth Y.M. Lee - Senior Consultant, Bank of Communications, Manhattan, New York, USA

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