SECTION V. Carriage by Sea.

Chapter 1. General Rules.

Clause 128. Arrangement of Cargo Carriage by Sea.

The conditions (terms) of sea carriage of cargoes shall be set by a contract (agreement).

Carriage by sea for state purposes shall be effected according to the procedure set by the acting legislation of Ukraine.

The Carrier and Cargo Owner, in case there is a necessity of arranging regular carriage of cargoes, may draw up long-term contracts on arrangement of carriage by sea.

Clause 129. Carriage by Sea by Common Carrier.

The marine common carrier shall:

a) be obliged to receive the cargo offered for carriage provided there are on board a vessel compartments suitable for carriage and said cargo may be carried without causing damage or losses to cargoes received for carriage prior to this;

b) not prefer one cargo owner to another one, concerning receipt of cargo and terms of carriage, excluding the cases stipulated by the acting legislation of Ukraine;

c) publish the tariffs and terms of carriage.

The marine common carrier shall not have the right to sign contracts with cargo owners stipulating an exemption from or a reduction of liability to which, according to the rules in this SECTION, said carrier is subject, for loss, shortage and damage to cargo or delay in delivery thereof.

Clause 130. Prohibition of Receiving Cargo for Carriage.

A receipt of cargo in certain direction may be prohibited in extraordinary instances only by the central body of executive power, ensuring the development and implementation of state policy in the field of maritime and river transport with due notification of the organizations concerned and the Government of Ukraine.

In the event of natural calamities, catastrophes, disasters and incidents that have led to an interruption in traffic as well as in instances of imposed quarantine, a receipt of cargo may be temporarily ceased or restricted on order of the Port Manager, with immediate notification of the central body of executive power, ensuring the development and implementation of state policy in the field of maritime and river transport to this effect, said Ministry determining thereupon the term of prohibition of cargo recei pt or limitation thereof.

Prohibition, temporary cessation or restriction of cargo receipt' may be introduced in respect to the carriage in direction of certain ports or to said ports.

The Port Manager shall immediately notify shippers and in case of direct mixed or direct water carriage of cargoes, the organizations of other means of transport, of said prohibition, temporary cessation or restriction of cargo receipt.

Clause 131. Coastal Trade (Carriage).

Carriage between Ukrainian ports shall be effected by vessels flying the State Flag of Ukraine as well as vessel flying foreign flag provided said vessels received a permission to this effect from the central body of executive power, ensuring the development and implementation of state policy in the field of maritime and river transport.

Clause 132. International Trade ( Carriage).

Carriage between the Ukranian and foreign ports may be effected both by vessels flying the State Flag of Ukraine and, upon an agreement, by foreign flag vessels.