SECTION V. Carriage by Sea.

Chapter 2. Contract of Cargo Carriage by Sea.

Clause 133. Definition of Contract of Cargo Carriage by Sea.

In accordance with a contract of carriage by sea, the carrier or the charterer shall undertake to carry the cargo entrusted to him by the shipper from the port of shipping to the port of destination and to deliver it to a person duly authorized therefore (the consignee), and the shipper or the charterer shall undertake to pay for said carriage an established sum (freight).

The charterer and the owner shall be the persons who have concluded between themselves a contract (agreement) of chartering (charter party).

Clause 134. Proofs of Existence and Contents of Contract.

A contract of cargo carriage by sea (thereafter referred to as Contract) shall be drawn in writing. The documents confirming the existence and contents of a contract shall be:

1. a voyage charter-party, if the contract sets a condition of providing for carriage the entire vessel, her part or separate vessel's compartment;
2. a Bill of Lading, if the contract does not include the conditions indicated in item 1 of this Clause;
3. any other written proofs.

Clause 135. Legal Relations Between Carrier and Consignee.

Legal relations of the Carrier and the Consignee shall be determined by Bill of Lading (thereafter referred to as Bill of Lading). The terms (conditions) of the contract not included in the Bill of Lading shall be obligatory for the Consignee if there is a note in the Bill of Lading referring to a document wherein they are included.

Clause 136. Particulars of Voyage Charter-party.

Voyage charter-party (thereafter referred to as carter party) shall contain the following main particulars: the names of Parties, the vessel and cargo, ports of shipping/loading and destination (or the direction of vessel's voyage). On agreement of the Parties, other terms and remarks may be included in the voyage carter party. Voyage carter party shall be signed by the Carrier and the Charterer or their authorized representatives.

Clause 137. Proof of Receipt of Cargo for Carriage.

Upon receipt of cargo for carriage, the Carrier, the Master or the Agent of the Carrier shall hand in to the Shipper the Bill of Lading which shall be a proof of the receipt by the Carrier of cargo indicated in the Bill of Lading.

The Carrier is at liberty to issue a (document other than the Bill of Lading, and providing the receipt of cargo for carriage. Such a document shall be the main evidence of drawing the Contract and of the receipt by the Carrier of cargo described in said document.

The Bill of Lading shall be drawn on the basis of the document signed by the Shipper, included wherein shall be data indicated in items 4-8 of Clause 138 of this Code.

The Shipper shall be liable to the Carrier for any consequences which arose out of incorrect or incomplete data entered in said document.

Clause 138. Particulars of Bill of Lading (Bill Of Lading).

Indicated in the Bill of Lading shall be:

1. name of the vessel if the cargo has been received for carriage by a definite vessel;
2. name of Carrier;
3. place of cargo receipt or loading;
4. name of the Shipper;
5. (place of) cargo destination or, upon existence of the carter party, vessel destination or general direction of the vessel's sailing;
6. name of Consignee (nominal or straight Bill of Lading) or an indication that said Bill of Lading has been issued "consigned to order of Shipper" or the name of Consignee with indication that said Bill of Lading has been issued "consigned to order of Consignee" (order Bill Of Lading) or an indication that said Bill Of Lading has been issued "consigned to bearer" (bearer Bill Of Lading);
7. name and description of cargo, number of cases/crates or quantity and/or measure (mass, volume) and, if necessary, particulars and properties of cargo;
8. freight and other payments due to the Carrier or indications that the freight shall be paid in accordance with the terms listed in voyage carter party or in the other documents, or that the freight has been paid in full;
9. time and place of issue of the Bill of Lading;
10. number of originals of the Bill of Lading;
11. signature of the Master or other representative of the Carrier.

When towing timber in rafts, the data indicated in item 7 of this Clause shall not be checked by the Carrier and entered into said Bill of Lading on the basis of the Shipper's written statement.

If, when carrying liquid cargo or bulk cargo, the data included in item 7 of this Clause have not been checked, the Carrier shall have the right to include them in said Bill of Lading with an appropriate warning. The same warning may be included by the Carrier when carrying various cargoes provided he has sufficient grounds to presume that the data included in item 7 of this Clause has been stated incorrectly by the Shipowner or he has had no possibility to check them. When carrying cargoes in a foreign trade, the Bill Of Lading may, by agreement of the parties, include other conditions and remarks.

Clause 139. Number of Originals of Bill Of Lading.

The Carrier shall issue to the Shipper on his request several authentic originals of the Bill of Lading, a total number of drawn Bills of Lading shall be indicated in each of them. After having delivered the cargo by one of the Bill of Lading, the other originals shall be invalid.

Clause 140. Negotiation of Bill of Lading.

The Bill Of Lading shall be negotiated with observance of the following rules:

1. nominal or straight Bill Of Lading may be negotiated by making nominal/straight endorsements or in other form with observance of the rules set for a transfer of a demand for payment (a bond);
2. order Bill Of Lading may be negotiated by nominal or blank endorsements;
3. bearer bill of lading may be negotiated by mere delivery.

Clause 141. Returning Cargo to Shipper.

The Shipper shall have the right to demand a return of cargo at the port of shipping before vessel's departure or at the intermediate port, or a delivery of cargo to a person other than stated in the Bill of Lading, provided he produces all originals of the Bill of Lading issued to the Shipper or furnishes sufficient security, observing there at the rules of this Code regarding a refusal from the Contract (of carriage by sea). Same right shall stay with any lawful holder of all (a complete set of) the Bill Of Lading issued to the Shipper.

Clause 142. Cargo Tare and Packing.

The cargoes requiring tare and packing as a protection against loss, shortage and damage shall be supplied for carriage in an adequate tare and packing that ensure safety of cargo during its transportation and transshipment (reloading).

Each shipping case/crate shall have a complete and distinct marking demanded by the rules of cargo carriage by sea.

The rafts shall be supplied by the Shipper in a condition meeting established rules of raft bundling and, in the absence of such rules, in a condition ensuring safe and complete delivery thereof by sea.

Clause 143. Seaworthiness of Vessel.

The Carrier shall in advance, prior to a commencement of the voyage, make the vessel seaworthy, ensure technical serviceability of the vessel for sailing, adequately outfit and supply her, men the vessel, as well as bring the holds and all other spaces where the cargo is carried to a condition ensuring safe reception, carriage and storage of cargo.

The Carrier shall not be liable if he proves that an unseaworthy condition of the vessel had been caused by faults and defects that could not be revealed on observing with proper care and thoroughness (latent defects).

Clause 144. Documents for Cargo.

The Shipper shall timely pass over to the Carrier all the documents related to cargo as required by the port, customs, sanitary and other administrative rules. The Shipper shall be liable to the Carrier for any losses caused by untimely transfer, incorrectness or incompleteness of said documents.

Clause 145. Replacement of Vessel.

In case the cargo is to be carried by a certain vessel, it may be loaded onto the other vessel with a due consent of the Shipper or the Charterer only, excluding the cases of cargo transshipment caused by the beginning of loading.

Clause 146. Arrangement of Cargo on Board.

The cargo shall be arranged on board the vessel at the Master's discretion, but shall not be placed on deck without a written consent of the Shipper, excluding the cargoes allowed for carriage on deck in conformity with the existing rules and customs.

The Carrier shall be liable for the correct arrangement, lashing (securing) and separation of cargo on board. Carrier's instructions on loading, securing and separation of cargo shall be obligatory for legal and physical persons performing cargo operations.

Clause 147. Cargo Carriage in Sealed Spaces.

Cargoes may be carried in a lighter, a container, a cargo space, sealed by the Shipper.

Clause 148. Lay Time.

A period within which the cargo should be loaded on board or discharged therefrom (lay time) shall be set by agreement of the parties and, in the absence of such an agreement by the standards adopted in the port of loading/discharge.

Clause 149. Demurrage Time.

The parties may, by agreement, set an additional, counted after completion of the loading/discharge, period whereat the vessel is kept waiting for completion of cargo operation (demurrage time) and the amount of payment to the Carrier for delay of the vessel during a demurrage (time) as well as award for completing the loading/discharging prior to expiration of lay time (dispatch).

In absence of the agreement between the parties stipulated by the first part of this Clause, a demurrage time and an amount of payment due to the Carrier for the vessel's delay as well as an amount of the award due to the Shipper or the Charterer for terminating the loading/discharging ahead of time shall be set in accordance with terms and rates adopted in the respective port.

In the absence of said rates the amount of payment for the delay shall be determined taking as basis the running expenses for maintaining the vessel and crew thereof, and the award for termination of loading/discharging ahead of time shall be counted as a half of the delay time payment.

Clause 150. Vessel's Detention.

When loading the vessel, the Carrier shall have the right, on the exemption of demurrage time, to recover the losses incurred to him by further delay of the vessel, and to set vessel to sea even if not all available cargo is loaded on board by reasons not dependent on the Carrier. In so doing, the Carrier shall preserve his right for receiving the freight in full.

Clause 151. Reception of Cargo in Case Vessel is Delayed at Loading.

In case of providing entire vessel for cargo carriage, the Master shall have no right to decline receiving the cargo delivered before the lay time or demurrage expires, on the condition the parties have agreed thereon, even if the reception and stowage of cargo may delay the vessel in excess of the established period. Thereupon the Shipper shall reimburse to the Carrier the incurred losses, for each extra day of the vessel's delay in excess of demurrage time. When a part of the vessel is provided for the carriage of cargo, the Master shall have the right, until expiration of the agreed-upon lay time (or lay time and demurrage time), to refuse receiving the cargo that, because it has been supplied with a delay, can be loaded on board properly and without causing any harm to the other cargo by delaying the vessel only. In so doing the Carrier shall preserve his right to receive the freight in full.

Clause 152. Discharge of Strange Cargo.

In cases an entire vessel or her part or certain vessel's spaces are provided for cargo carriage, the Shipper is at liberty to demand the removal of the cargo not belonging to him from the a vessel, a part or a space thereof, allocated to him in the port of departure and, should an entire vessel be provided-in any port of call. If the strange cargo has not been removed from the vessel in time, the Shipper shall have the right to demand a corresponding decrease in freight as well as reimbursement of any losses incurred to him thereby.

Clause 153. Incorrectly Declared Cargo.

In case an inflammable, explosive or inherently dangerous cargo has been passed over under an incorrect or incomplete description and, during its receipt, the Carrier could not by visual inspection verify its properties, said cargo may be discharged by the Carrier at any time, destroyed or rendered harmless, as the circumstances permit, without reimbursing the incurred losses to the Shipper.

The Shipper shall be liable for all losses incurred by the Carrier or by the third parties in connection with a carriage of said cargo.

The freight due for carrying said cargo shall not be returned and, if not prepaid on shipping said cargo, it may be demanded by the Carrier in full.

Clause 154. Discharge of Dangerous Cargo.

In case the cargo mentioned in Clause 153 of this Code and loaded with consent of the Carrier, becomes dangerous for the vesel, other cargo or the persons on board the vessel, the Carrier shall have the right to act in respect of said cargo as indicated in the first part of Clause 153 of this Code. In this instance, the Shipper shall not be liable to the Carrier for the losses incurred in connection with carriage of said cargo, excluding a case of general average. The Carrier shall have the right for freight in the amount proportional to the actual distance of carriage of said cargo until such carriage has been terminated.

Clause 155. Departure of Vessel with Partial Cargo.

In case an entire vessel has been provided to the Shipper for carrying his cargo, the Carrier shall, on request of the Shipper, set the vessel sailing even if the cargo has not been loaded in full, The Carrier, in this case, shall retain his right for full freight.

Clause 156. Cancellation of Contract by Parties Prior to Departure of Vessel.

Each party shall have the right to cancel the Contract (of carriage by sea) without reimbursing to the other party the corresponding losses in the following cases that have arisen prior to departure of the vessel from the port of shipping:

1. military or other actions which may present a danger of seizure of the vessel or cargo;
2. blockade of the port of departure and/or destination;
3. vessel's detainment by authorities for reasons that do not depend on the parties of the Contract.
4. making use of the vessel for special state services;
5. prohibition by port authorities of carriage from the port of departure or delivery to the port of destination of the cargo intended for carriage.

The cases mentioned in items 3, 5 of this Clause shall not be considered sufficient grounds for cancelling the Contract without reimbursing the losses to the other party provided said delay is short.

In the cases indicated in this Clause, the Carrier shall not bear expenses connected with discharge.

Clause 157. Cancellation of Contract by Parties During Voyage.

Each of the parties may, as a result of any of the circumstances mentioned in Clause 156 of this Code, cancel the Contract during the voyage as well. In this case the Shipper shall reimburse to the Carrier all expenses related to the cargo including those related to discharge, and the freight in proportion to the actual distance of carriage of said cargo.

Clause 158. Termination of Contract without Cancellation by Parties.

The Contract shall be terminated without cancellation by the parties and without obligations of one of the parties to reimburse the losses incurred by termination of the Contract and before vessel's departure from the place of loading as a result of circumstances not dependent on the parties:

1. the vessel perishes or is seized by force;
2. the vessel is found unseaworthy;
3. the individually determined cargo perishes;
4. the cargo determined by generic (category) features perishes after it has been supplied for loading, and the Shipper would not have sufficient time to supply another cargo instead of the perished one.

The Contract shall be terminated due to the mentioned circumstances during the voyage as well. Thereupon, the Carrier shall be entitled to the freight in proportion to the actual distance of carriage and depending on the quantity of cargo saved and delivered by the Carrier.

Clause 159. Obstacles in Calling at Port.

If the vessel may not enter the port of destination because of a prohibition of the authorities, natural calamities or other reasons not dependent on the Carrier, the latter shall immediately notify the Shipper thereof.

If, within a reasonable time since sending said notification, no instructions (orders) as to cargo are received from the Shipper, the Master shall be at liberty to discharge said cargo in one of the nearest ports, at his own discretion, or return said cargo to the port of shipping, whichever is, in Master's opinion, more profitable for the Shipper.

If only a part of the vessel is provided for carriage, the Master shall discharge the cargo that may not be delivered to the port of destination, to the other port, in accordance with the Shipper's orders. In the absence of said orders within three days from the moment of sending said notification, the Master shall have the right to discharge the cargo in the nearest port at his own discretion, having notified the Shipper to this effect. The Master shall have the right to do the same also in that case when the Shipper's orders may not be fulfilled without inflicting damages to the owners of other cargoes located on board. The Shipper shall then reimburse the Carrier for all losses incurred by waiting for the Shipper's instructions within a reasonable time as well as any other expenses connected with the cargo, and pay the freight in proportion to the actual distance of carriage.

Clause 160. Term of Cargo Delivery.

The Carrier shall undertake to deliver cargoes within established term and, if such has not been established, within generally accepted term.

Clause 161. Deviation of Vessel.

Any deviation of the vessel from the planned voyage route with the purpose of saving life, vessels or cargoes at sea and, similarly, any other reasonable deviation, if it has not been caused by wrongful actions of the Carrier, shall not be considered a violation of the Contract.

Clause 162. Delivery of Cargo.

The cargo shall be delivered (passed over) at the port of destination:

1. on producing the nominal (straight) Bill of Lading - to the Consignee indicated in the Bill of Lading or to the person to whom said Bill of Lading that has been negotiated by nominal (straight) endorsement or in other form with observance of the rules established for transfer of a demand for payment (a bond);
2. on producing the order Bill of Lading - to the Shipper or the Consignee, depending on whether said Bill of Lading has been "consigned to order of a Shipper" or "consigned to order of a Consignee" - and, if said Bill of Lading contains endorsement - to the person stated in the last of a continuous list of endorsements, or to the person producing said Bill of Lading with the last blank endorsement;
3. on producing the bearer Bill of Lading - to the bearer of said Bill of Lading.

Clause 163. Payments on Delivery of Cargo. Right of Lien on Cargo.

At the delivery of cargo the Consignees shall reimburse the losses concerning the cargo to the Carrier, make payments for vessel's demurrage in the port of discharge as well as pay the freight and the amount due for the demurrage in the port of shipping provided this has been stipulated in the Bill of Lading or other documents on the basis of which the cargo has been carried and, in the case of general average - provide the general average deposit or adequate security.

The Carrier is at liberty not to deliver the cargo until payment of amounts or provision of security indicated in the first port of this Clause.

The Carrier shall retain the right of lien on the cargo if he deposits the cargo to a warehouse not belonging to the Consignee, provided he informs the warehouse owner of said right.

Upon delivery of the cargo to the Consignee, the Carrier shall not have the right of demanding from the Shipper or the Charterer the payments that have not been made by the Consignee, excluding the cases when the Carrier could not realise his right of lien on the cargo by reasons not dependent upon the Carrier.

Clause 164. Right of Mortgage (Security) upon Cargo.

To ensure an observance of requirements mentioned in the first part of Clause 163 of this Code,, the Carrier shall have the right of a security (mortgage) on the cargo carried.

Said right shall be terminated in the following instances:

1. passing over the cargo to the Consignee;
2. fulfillment of the Carrier's requirements (demands) ensured by said deposit;
3. acceptance by the Carrier of other adequate security.

The Carrier shall have the right, following the procedure stipulated by the Law, to sell the cargo that is a subject of mortgage, after having notified the Shipper, the Charterer as well as the Consignee thereof.

The demands of the Clause 163 of this Code shall be fulfilled out of the sums received on selling said cargo, after paying the vessel's expenses and expenses connected with cargo storage and sale.

In case sums received on selling said cargo are insufficient to fulfill the needs mentioned in the first part of Clause 163 of this Code as well as interest and losses incurred by delay of payment, the Carrier shall have the right to demand the missing sum from the Shipper or the Charterer.

Clause 165. Inspection and Checkup of Cargo Quantity.

Both the Consignee and the Carrier shall have the right to demand, prior to delivery of cargo, an inspection and/or a check-up of its quantity. The expenses connected with said procedure shall be borne by the party requesting said inspection and check-up.

Clause 166. Statement of Shortage of and Damage to Cargo.

In case, on receipt of cargo carried by the Bill of Lading, the Consignee does not claim to the Carrier in writing a shortage of or damage to cargo, it shall be considered, unless proved otherwise, that the Consignee has received said cargo in accordance with said Bill of Lading. If the cargo has been inspected and checked-up as to its quantity jointly by the Consignee and the Carrier, need not make a claim mentioned in the first part of this Clause.

Should a loss, shortage of or damage to cargo be impossible to detect while using accepted method of cargo receipt, the Consignee may make said claim to the Carrier within three days after receipt of cargo.

The Contracts that are in contradiction with this Clause shall not be valid.

Clause 167. Depositing Unclaimed Cargo in Storage.

In case a part of the vessel had been provided for carrying cargo and the Consignee neither claimed said cargo at the port of destination nor made arrangements about it or refused from it, the Carrier shall have the right, after duly notifying the Shipper thereof, to deposit said cargo in storage to a warehouse or other safe place at the expense and at the risk of the Shipper.

In case an entire vessel had been provided for carriage and the Consignee has not appeared at the port of destination or refused to receive said cargo, the Master shall immediately notify the Shipper thereof. The discharge and deposition of said cargo in a warehouse shall be effected by the Master only after expiration of the term of discharge and of demurrage time and provided no other order of the Shipper is recieved during this period. The time spent by the Carrier in depositing said cargo in storage shall be considered a delay of the vessel.

If, within two months since the day of vessel's call at said port, the cargo deposited in storage is not claimed and the Shipper does not pay the Carrier all sums due to the latter in connection with said carriage, the Carrier shall have the right to sell said cargo before an expiration of said period.

The terms and procedure of cargo storage up to its receipt by Consignee in the sea ports of Ukraine shall be determined by the rules set by the central body of executive power, ensuring the development and implementation of state policy in the field of maritime and river transport, as indicated by Clause 3 of this Code.

The cargoes kept in storage longer than said term shall be sold by procedure established by the acting legislation of Ukraine and said ports shall be compensated for all expenses for storage of said cargoes, according to the rules of Clause 169 of this Code.

Clause 168. Payment for Storage of Untimely Carried out Cargo.

In case of accumulation in the sea ports of Ukraine of cargoes carried in coastal trade as a result of their untimely removal by the Consignees' fault, a payment for storing said cargoes at said ports may be raised up to threefold.

The increased rate of payment for said storage shall be effected not earlier than one day after a written notification of legal or physical entity that is supposed to be charged at the increased rate.

Clause 169. Sale of Cargo Unclaimed and Deposited in Storage.

The amounts received from sale of said cargo mentioned in Clause 167 of this Code less the sums due to the Carrier, shall be deposited to the name of the Carrier to be transferred as applicable.

Should the amounts received from sale of said cargo be not sufficient for effecting payments due to the carrier and for compensating the losses of the latter connected with the storage and sale of said cargo, the Carrier shall have the right to recover the balance from the Shipper.

Should nobody, within six months since the day of cargo sale, claim his rights to the money procured from said sale, said sum less the payments due to the Carrier, shall be turned to the revenue of the budget of Ukraine, and the sum procured from sale of undocumented cargo - to the revenue of the Carrier for covering the losses caused by satisfying the demands connected with a shortage, loss or disappearance of cargo.

Clause 170. Payment of Freight.

All payments due to the Carrier shall be made by the Shipper (the Charterer).

In the instances provided for by the Contract between the Shipper (the Charterer) with the Carrier and, in coastal trade -by the rules acting in the sea transport of Ukraine, a transfer of obligatory payments to the Consignee shall be allowed.

The Consignee shall pay the Carrier on cargo delivery, if it has not been done earlier, the due freight, the compensations for the vessel's delay and the losses connected with the cargo, as indicated by the Carrier and, in the case of a general average -make a general average payment (deposit) or provide an adequate security.

The Carrier is at liberty to hold the cargo until payment of the sums or provision of the security mentioned in the third part of this Clause.

Clause 171. Provision for Payment of Freight.

In case a cost of the loaded cargo does not cover the sum of freight and other expenses of the Carrier in connection with said cargo, and if the Shipper has not paid the freight in full prior to departure and has not provided an additional security, the Carrier shall have the right to cancel the Contract and demand a payment of the agreed freight, a payment for the delay, if any, and a reimbursement of other losses incurred by the Carrier in connection with said cargo. A discharge of said cargo shall be at the expense of the Shipper.

Clause 172. Payment of Freight when Shipper Cancels Contract and if Entire Vessel Has Been Provided for Carriage.

In case an entire vessel has been provided for cargo carriage, the Shipper shall have the right to cancel the Contract provided he pays:

1. a half of the full freight, the amount due for delay, if any, and the Carrier's expenses in connection with said cargo that have not been included in the amount of freight, provided said cancellation of the Shipper has been declared prior to the expiration of the lay time or demurrage established relative to loading or to sailing of the vessel, whichever comes earlier;
2. full freight and other sums indicated in item 1 of this Clause if said cancellation has been declared after one of the moments indicated in item 1 of this Clause, and the contract has been concluded for one voyage only;
3. full freight for the first voyage, other sums indicated in item 1 of this Clause and a half of the freight due for the remaining voyages, if said cancellation has been declared after one of the moments indicated in item I of this Clause, and the Contract has been concluded for several voyages.

In case the Shipper cancels the Contract prior to the commencement of voyage, the Carrier shall return said cargo to the Shipper even if the vessel may be delayed in excess of established time because of unloading.

In case the Shipper cancels the Contract during the voyage, he shall have the right to demand the return of said cargo only at the port of destination where the vessel is bound to in accordance with the Contract or at the other port whereat she called of necessity.

Clause 173. Payment of Freight when Shipper Cancels Contract and if Part of Vessel Has Been Provided for Carriage.

In case a part of the vessel has been provided for carriage, the Shipper shall have the right to cancel the Contract only on payment of the full freight, expenses for the delay, if any, and reimbursement of the Carrier's expenses in connection with said cargo that had not been included in the amount of freight. The Carrier shall undertake, on Shipper's request, to return said cargo prior to its delivery to the port of destination, provided only it does not incur losses to the Carrier and Shippers of other cargoes.

Clause 174. Distance Freight.

In case of loss, shortage or damage to cargo caused by the reasons not dependent upon the Carrier, the freight shall be paid in full. In cases indicated in Clauses 154, 157, 158 of this Code the freight shall be paid in proportion to the distance of carriage.

Clause 175. Delay of Freight Payment.

The freight and other payments due to the Carrier and the term of their payment are stipulated by the Contract. For the delayed freight payment the Shipper (Charterer) shall pay the penalty in accordance with the terms of Contract or with the rates determined by the central body of executive power, ensuring the development and implementation of state policy in the field of maritime and river transport.

Clause 176. Grounds for Exemption of Carrier from Liability for Loss, Shortage and Damage of Cargo.

The Carrier shall be liable for the loss, shortage or damage to cargo received for carriage unless he proves that said loss, shortage or damage were not due to his fault but resulted, in particular, from :

1. natural calamities;
2. occurrence of dangers and accidents at sea and in other navigable waters;
3. fire caused by reasons other than Carrier's faults;
4. saving human life, vessels or cargoes;
5. actions or orders of the authorities (detention, arrest, quarantine, etc.);
6. military operations, acts of terrorism, civil commotions;
7. actions or omissions of the Shipper or Consignee;
8. latent deficiencies of cargo, its properties or natural drawbacks that, however, do not exceed the established standards;
9. undetectable on visual inspection deficiencies of tare and packing or of bundling of timber in a raft;
10. insufficiency or illegibility of cargo marking;
11. strikes or other circumstances that have caused a suspension or complete/partial restriction of work;
12. actions aimed at prevention of environment pollution.

A liability of the Carrier according to this Clause shall arise from the moment of receiving cargo for carriage and shall terminate at the moment of cargo delivery.

The Contracts that do not meet the requirements of this Clause shall not be valid except those stipulating liability from the moment of receiving cargo for its loading on board and after discharge to the moment of cargo delivery.

Clause 177. Navigational Error.

The Carrier shall not be liable for the loss, shortage or damage to cargo if he proves that they have been caused by actions and omissions of the Master, other members of the crew and a pilot in navigation or control of the vessel. The Carrier shall be liable for the loss, shortage or damage of cargo caused by said actions of said persons during loading, arrangement, discharge or delivery of cargo, in accordance with the rules of Clause 176 of this Code.

Clause 178. Exemption of Carrier from Liability for Loss (Shortage) of Cargo.

The Carrier shall not be liable for the loss (shortage) of cargo that has been carried to the part of destination:

1. in sound and serviceable spaces of the vessel, in lighters or containers with intact seals of the Shipper (Clause 147 of this Code);
2. in a sound and serviceable tare showing no traces of being tampered with anied route;
3. accompanied by the Shipper's or Consignee's conductor unless the Consignee proves that said loss (shortage) of cargo was caused by Carrier's fault.

Clause 179. Extent of Carrier's Liability for Loss of, Shortage of and Damage to Cargo.

The Carrier shall be liable for any losses incurred by the shortage of or damage to cargo as follows:

• for loss and shortage of cargo - in amount equal to the reduction in cargo cost;
• the Carrier shall also return the freight received if it is not included into the cost of lost or missing cargo.

Clause 180. Determination of Cargo Cost.

The actual value of lost or missing cargo shall be determined by the prices current at the port of destination when the vessel called or should have called thereat and, if said prices cannot be determined - by the prices of the port of departure at the time of shipping the cargo, increased by the costs of carriage.

The reimbursement amount due for the lost, missing or damaged cargo shall be reduced by the expenses connected with the carriage (freight, dues and charges, etc.) which should have been paid by the cargo owner but were not, because of shortage of or damage to cargo.

Clause 181. Limitation of Carrier's Liability with Undeclared Cargo Value.

In case a value of cargo has not been declared and included in the Bill of Lading, the reimbursement for missing or damaged shipping case (crate) or cargo unit shall not exceed 666,67 units of account (of the International Monetary Fund) or 2.0 units of account for one kilogram of gross mass of the missing, damaged or spoiled cargo, whichever sum is greater, excluding the cost of a container or other transport facility belonging to the Shipper (Charterer), said cost to be determined in accordance with Clause 182 of this Code.

An agreement on reduction of the sums mentioned above shall be invalid. The Carrier shall have no right to limit the liability envisaged by the first part of this Clause if it has been proved that loss, shortage or damage that resulted due to wrongful actions and omissions of the Carrier performed deliberately to cause said loss, shortage or damage or presumptuously, with awareness of the possibility of causing said loss.

An employee or an agent of the Carrier shall have no right to make use of the rules prescribed by this Chapter regarding the limitation of liability if it has been proved that said loss, shortage or damage were caused by actions or omissions of said employee or agent made deliberately to cause said losses or presumptuously, with awareness of possible damage.

If the Bill of Lading states the number of shipping cases or cargo units placed in a container or other transport arrangement, said number shall be, in terms of this Clause, adopted in accordance with the Bill of Lading. If the Bill of Lading does not indicate the number of shipping cases or cargo units placed in a container or other arrangement, said number shall be considered one shipping case or one unit of cargo.

Clause 183. Liability for Delay of Vessel by Fault of Shipper or Consignee.

The liability for down-time of the vessel resulting from non-providing or untimely providing cargo, delay of cargo-handling operations performed by Shipper's or Consignee's means, other delays caused by the Shipper or the Consignee, shall be borne by them in accordance with the Contract.

A penalty for demurrage time of vessels shall be recovered without acceptance after presenting the Shipper or the Consignee the laytime and amount of penalty calculations.



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