HOW TO SELECT A SHIPPING OR LOGISTICS FIRM

When it comes to finding shipping and logistics companies to handle the needs of a business, speed, stability and the company’s background and references are important, experts say.

But the first thing a business in need of logistics and shipping services should do is compare costs to determine whether it is cheaper to hire a company that specializes in the work. 

Another important aspect is looking at how fast a logistics company can get a product from the manufacturer to the retailer, store or business.

You want speed-to-market and that is the biggest thing because the faster a product gets to the market the lower the inventory costs.

The cost and speed factors are important parts of one of the largest growing segments of the logistics industry, which orders fulfillment.

Another way to gauge a logistics company’s qualifications is to see if it has any kind of certification, experts say. In fact, make sure the logistics company follows all regulatory requirements.

Right now, one thing that businesses need to be careful of is they need to look for stability. Businesses need to make sure it a stable and that their financial backing is sufficient.

The next step is to make sure the shipping company can fit the needs of the business.

Tips for choosing a logistics/shipping company

• Look for speed: Try to find a company that can deliver a product to the retailer or business the quickest.
• Check backgrounds and references: Get a list of the company’s clients and top executives and solicit testimonials from its customers.
• Make sure it’s certified: Check to see if the company is certified.

10 CHECK POINTS TO CHOOSE THE RIGHT WAREHOUSE FOR YOUR PRODUCTS

There're a lot of different factors to take into consideration when you are looking at a contract logistics supplier to store and ship products to your consignee.

You want them to effectively and efficiently store and ship your merchandise the best way, of course, but there is more to choosing the right supplier than meets the eye during a walk-through of their facility.

For instance, you probably want them to be knowledgeable about your product, offer flexibility, and working toward constantly improving their core competencies and services.

Here is a checklist of 12 areas to check and validate that they are a best-in-breed supplier for performing transactions of warehousing and transportation management for you.

1) Are they committed to knowing your product..??

This is where good warehousing begins, and your supplier will need to know everything there is to know about the product you will be storing at their warehouse. They should be sending well-informed technical personnel to have a look at your product if you have a unique or new product.

The supplier should know the product front to back before bringing in the first carton into their facility because the product’s characteristics are going to determine how it will be handled and stored. They should be asking questions about the product regarding:

• Dimension specifications: Is it small? Is it irregularly shaped? Is it heavy or bulky?
• Sensitivity considerations: Does it expire? Will it need refrigeration? Will moisture or heat affect it?
• Fragile and special handling requirements: Does it require special packaging? Can it be double-stacked when stored or shipped? Will vibration or tilting affect it?
• Safety considerations: Is the product dangerous goods? Is it hazardous? Does it need ventilation? Can it be stored next to another product?
• The value of the product: Will this product need insurance or special security measures purchased for it?
• Any other special requirement questions.

Suppliers that do these steps are demonstrating to you that they want to be knowledgeable about the technical or safety requirements about your product and want to avoid pitfalls and confusion once the product is in the facility.

2) Adequate volume and space

A reputable and knowledgeable supplier should find out how the product is delivered to them and plan accordingly.  If you send material that is floor loaded to them, they should plan enough space in the receiving area to accommodate it without any crowding.

Volume requirements and the size of your product should drive how much surface area is needed for incoming and outgoing shipments, and the supplier should be able to demonstrate on a drawing or by a physical walk through how they are going to adequately stage material and store it sufficiently.

3) Is their equipment a good fit for your product type..?? 

Ensure your supplier is leasing or buying the best fitting equipment such as storage and material handling for the type of products they will be storing and shipping for you.

4) Enough handling personnel

One of the resources that can potentially cause issues for storing and shipping your merchandise is if the supplier is not adequately planning personnel.

The company that handles your goods should present a solid business plan for qualitative and quantitative business needs that are able to respond to forecasted volume and any special requirements you have.

5) They use a WMS

The supplier should have a WMS (Warehouse Management System) in place to manage your inventory transactions and they should not be doing any transactions without any system recording turnovers in inventory. They should not be just receiving the material, putting it away, and picking it without recording anything.. Make sure you check their WMS

6) Inventory accuracy and control

One of the main areas in a warehouse that is the most problematic and underestimated is inventory control. It looks really easy to just put away the product and then go pick it, right?

Not so fast – if there is no plan in place for managing inventory, it’s going to be scattered everywhere – and nothing will be more frustrating to your planners and material control personnel than having a hot order than needs to ship and the supplier calls you and tells you that the material isn’t there.

Don’t let that happen! Ask the potential supplier to explain their inventory control plan they intend to use. Don’t try to control their inventory for them or come up with an inventory control plan, that’s one of the reasons you’re outsourcing the warehouse and shipping business in the first place.

7) Ergonomics and productivity are important to them

There’s a direct relation between ergonomics and productivity in efficiency studies. Make sure that the supplier warehouse has a sound ergonomic design. Well-designed equipment and furniture keep the employees comfortable and cut down on injuries.

8) Work instructions

Have the supplier explain and document how they plan to train and retrain their personnel. Make sure that they keep training records, also. Make sure that they have ISO certification that applies to the type of business they are operating. This shows that they are serious and committed toward standardization and the quality of your operations

9) They have a clean and safe warehouse

A clean warehouse is a safe warehouse. Many suppliers think that a word of mouth cleaning plan is enough to have in place at a warehouse – and it shows when you are doing a walk-through. If the warehouse is cluttered and dirty, that is an indication of how they will take care of your product. You should refuse to do business with a supplier if their warehouse looks like a wasteland.

10) Their transportation is top notch

For transportation services, the supplier should be able to combine premium basic freight services, end-to-end, into one seamless supply chain solution. They should also be negotiating the lowest rates for any external freight services.

There should be enough pickups by trucks during operating hours, and their schedule should work well with your company. Cut off times for pickup and picking orders should be understood by all parties involved with the shipping operation. Also, all cross docking activities should turn the material around in the time you have specified and that area and all others should be visual and organized at the supplier’s facility.

The checklist in this article puts you on the successful path of ensuring that your supplier is effectively and efficiently warehousing your products.

It’s recommended that you stay involved with them to  continually ask questions, act on answers and take an active role in observing that they are always improving and staying efficient as possible.

The above requirements are not an all-inclusive list, but it’s a great start. Vetting them by the key points in this article will definitely help you work toward selecting an optimal operation for your products.

WHY YOU CAN FEEL CONFIDENT LEAVING CUSTOMS CLEARANCE TO US

We understand that there is a multitude of companies out there for your business. You have probably seen a lot of repetition. We like to think that we do things the right way by always putting our customers first and being transparent through the entire process.

Looking for a partner, you should identify one that develops customised solutions based on your company’s needs; a knowledgeable guide to smooth and efficient customs solutions, rather than one that tries to fit your company’s needs into those rigid systems. Your partner should be an expert who understands the local rules and regulations as well as the challenges of global business. Efficient customs solutions are often sprung from years of experience and the willingness to put both mind and money to it.

So, what makes us qualified of taking care of customs clearance for your business?

Vast experience of customs clearance and warehousing

Our staffs are experts in their field, whether it be ocean freight forwarding, warehousing or transportation. Wise decisions are based on experience, which is something we do have a lot of. But how many of these agents have the capacity and experience to guide their customers all the way to a successful operation? Throughout the years, we’ve helped a large number of satisfied customers to smart and efficient customs solutions based on current customs requirements.

Your Satisfaction

Ensuring that we deliver the best services to our clients is crucial for us. This is why we created s department dedicated to the satisfaction of our clients. Logical Maritime Services accompanies you at every stage of your move and ensures the continued improvement of our services

Knowing the pitfalls along the way to smart and efficient customs solutions

There are many pitfalls along the way to smart and efficient customs solutions. But we’ve walked these paths many times and know them well. We carefully navigate your company using projects tools that have been refined over many years and are proven in battle.

Doing the math for you, providing the best solution for your company

As our customer, we always provide you with the facts without any additional charges. With a customer-focused mindset, we look into what’s best for your business. Based on our vast experience and know-how, we can analyse your specific situation finding out which solution is the most cost-effective for your company. If there are any doubts we’ll let you know at an early stage. So, why not check with us first, before investing your time and money?

Local presence and the willingness to invest

We have the willingness to invest in your project and the ability to make quick decisions. On top of that we have a widespread local presence which enables us to meet our customers often and really get to know them. This altogether means that you’ll never have to worry about project delays due to limited external investment budgets, global policies or business management in a distant land.

Simply put, choose your customs partner wisely! If you’d like to know more about Logical Maritime Services Limited and our customs solutions do not hesitate to contact us! Also, visit us on our social media channels Facebook, Twitter, LinkedIn.

HOW TO DETERMINE THE AGE AND THE OVERAGE PENALTY RATE OF A USED CAR IMPORTED TO GHANA

The age of a vehicle is very crucial in customs declaration purposes in Ghana as the age of the vehicle determines the rate of Home Delivery value (HDV) to be used for computing the duty and other tariffs. A car which is more than 10 years old is considered overaged and attracts a penalty which is an extra charge paid in addition to other tariffs. It is therefore very important to know the age of a car before importing it into the country.

Determining the over aged penalty for vehicles

To determine the age of a vehicle, two concepts are widely used the “MODEL YEAR” concept or the “MANUFACTURING YEAR” concept.

• MODEL YEAR CONCEPT

In using this concept, the age of the vehicle could be determined from a letter in the 10^th position of a 17 character alphanumeric chassis number. Example a vehicle with its chassis number as GBA1J6LEK4ET69712 would have 2004 as its model year.

However, vehicles manufactured before 2001 have their ages determined by special alphabets allocated as codes to the year of manufacture. Thus A-1980, B-1981, C-1982, D-1983, E-1984, F-1985, in that series with the exceptions of the letters I, O, U and Q for obvious reasons, the letter I could be altered to read “T” or “L”, O could be changed to “Q”, U mistaken for “V” etc.  So a vehicle with a chassis number as A2300B281D9875632 would have 1983 as model year.    

The model year concept is applied to

All U.S./Canada vehicles, All Korean vehicles, Some Japanese vehicles (Mitsubishi, Isuzu), Some German vehicles (Opel, VW), Swedish vehicles (Volvo, Saab)

It should be noted that, all Japanese or European models manufactured for the American market or assembled in America uses the model year method by considering the 10^th letter in the chassis number the deviation to this rule, however, is FORD vehicles assembled outside the U.S. which rather uses the 11^th letter to determine the year of manufacture. Example a FORD Focus saloon car(U.K. model) with chassis number XYZUV348NCF12375A has 1985(F) as its model year and not 1982(C).

• MANUFACTURING YEAR CONCEPT

This applies to vehicles whose year could be determined from charts matrix based on the records of the manufacturer. Examples are some French vehicles like Citroen, Renault,  Some Japanese vehicles like Toyota, Mazda, Nissan,  German vehicles like Mercedes Benz, BMW etc.

These charts are usually provided by manufacturers through dealers of such vehicles.

So now that the age of the vehicle has been determined it's important to now check if it would be more than 10 years old as at when it would be entered for customs clearance in Ghana. The following rates are applied to a vehicle when  it’s over aged.

-private vehicles

Age exceeds 10 yrs but less than 12 years———- 5% of CIF value

Age exceeds 12yrs but less than 15 years———- 20% of CIF value

Age exceeds 15 years and beyond           ———– 50% of CIF value

–commercial vehicles(buses,vans etc)

Age exceeds 10yrs but not 12 years ————— 2.5% of CIF

Age exceeds 12 yrs but not 15 years ————– 10% of CIF

Age exceeds 15yrs but not 20years ————— 15% of CIF

Age exceeds 20 years and beyond —————- 50% of CIF

-commercial like trucks, Tipper trucks etc

Age exceeds 10 yrs but not 12 years ———— 5% of CIF

Age exceeds 12yrs but not 22yrs —————- 10% of CIF

Age exceeds  22 years and beyond ————  30% of CIF

5 STEPS TO HELP REDUCE COST OF PURCHASING AND IMPORTING VEHICLES

The task of buying and subsequently shipping a car from another country may involve certain processes, the buyer may, however, want to as much as possible reduce cost whiles at the same time ensure convenience and safety in order to protect the investments made in acquiring the vehicle. The following steps can be considered to help reduce cost when purchasing and shipping vehicles overseas.

1.   The sourcing location for the vehicle

The location from where you source or buy a vehicle could have a significant impact on the cost of transportation. Depending on the Port Of Destination (POD) you may want to consider the Port Of Loading (POL), for instance, a car shipped from the far East or Asia to the west coast of Africa may attract higher freight rate than that from saying the Americas or Europe (all things being equal)

Also, take note of the inland transportation that may be needed if your purchased vehicle is located in a hinterland state hence you must factor in the inland transportation cost of the vehicle to the nearest port for onward shipments. You may, therefore, want to consider purchasing a vehicle from a port state or that closer to a port.

2. Consider the age of the car

Considering the age of the vehicle could also have a great impact on the final cost of the vehicle as most countries(especially those that serves as huge markets for used cars) have age limitations on the kind of vehicles that are imported into them. When a vehicle exceeds the allowable age, certain sanctions may be applied. In Ghana for instance, a vehicle which is more than10 years old from the year of manufacture (NB. Year of manufacture and not the year of first registration) would attract an over aged penalty to be applied at a rate depending on how old the vehicle is. This could significantly affect the clearing cost of your car as you could pay between 5% to as much as 50% of CIF value as overage penalty alone.

3. Method of shipments

With the issue of sourcing location and the age of the vehicle addressed, you may now want to consider the most cost effective method of shipping your vehicle. Overseas vehicle shipments can be done with two methods thus either shipping in a container or opting for a Roll-On Roll-Off (RORO) service. Even though RORO presents a cheaper option you may still want to consider the pros and cons of both methods in relation to the cost, convenience, service availability at certain geographic locations(Ports), frequency and availability of handling facilities at both Port Of Loading and Discharge etc.

4. Purchase car from a dealer

One low-risk way of purchasing a car would be to contact a certified car dealer instead of an individual seller unless you may have more reasons to trust this individual. A car dealer probably has a repeated business of shipping cars overseas and may, therefore, advice you on possible ways to reduce cost in shipping your car since car shipments may be more of a “ritual” for him.

Moreover, car dealerships do not only provide you with secure purchasing process but may also serve as agents for you at the port of loading to ensure your vehicle is loaded and shipped safely a service which may not be provided by  private individual sellers as they may not have the time and hence you may have to look for a representative at an extra cost in the country of origin if you are not physically present there. A dealership also presents you with an established office to call if something should go wrong.

5. Customs valuation

This is a very crucial aspect of the entire overseas car purchasing process. Different countries would have different methods of evaluation of cars for customs clearance purposes and it is very important that you have a fair idea of the methods used and if possible and estimation of possible duties and taxes to be paid on a vehicle even before importing it to prevent disappointment once the vehicle arrives.

In Ghana, for instance, you can contact your freight forwarder (clearing agent) with certain details like the chases number of the intended car to be shipped, this information can then be forwarded to a customs valuation officer to give you a fair estimate of what is expected to be paid for clearance when the said car arrives. Also, try to start your clearance process early to avoid extra cost in demurrage and rent charges.

DIFFERENCE BETWEEN INTERMODAL AND MULTIMODAL

Intermodal and Multimodal – These two terms are often used loosely and interchangeably, but the question is what is the difference.

Definitions :

Intermodal – is the movement of cargo from origin to destination by several modes of transport where each of these modes has a different transport provider or entity responsible, each with its own independent contract. Multiple carriers during a single journey

Multimodal – is the movement of cargo from origin to destination by several modes of transport where each of these modes has a different transport provider or entity responsible, but under a single contract. Single carrier during a single journey

Simply put, the key functions of both terminologies are the same, but the differentiation lies in the contract and responsibility of the movement..

Explanation :

Intermodal operation: Cargo moving from Leicester in the UK to Pretoria in South Africa – Cargo is packed in Leicester and moved by truck to the port of Felixstowe by a transport service provider (could also be termed as an Intermodal service provider) under the employ of the shipper.

From Felixstowe, the carrier takes responsibility of the movement of the cargo to the discharge port in South Africa – say, Durban.

From Durban port, the consignee uses their transport service provider (could also be termed as an Intermodal service provider) to move the cargo by rail from Pretoria Rail Terminal followed by a road move to their premises or a full road move from Durban port to their premises in Pretoria.

The rail and road service may be provided by the same transport service provider or could be done by two different service providers..

In this case, the carrier issues a Port to Port Bill of lading, and the whole operation is called an Intermodal Operation as it involves several contracts:

• Between Seller or Buyer and Transport service provider for road/rail movement from Leicester to Felixstowe
• Between Seller or Buyer and Carrier for sea movement from Felixstowe to Durban
• Between Seller or Buyer and Transport service provider(s) for rail/road movement from Durban to Pretoria

The costs/risks for such contracts will, of course, depend on the Incoterms used for this trade..

Multimodal operation: Cargo moving from Leicester in the UK to Pretoria in South Africa – Cargo is packed in Leicester and moved by truck to the port of Felixstowe by a transport service provider (could also be termed as an Intermodal service provider) under the employ of the carrier.

Cargo moves from Felixstowe to the discharge port in South Africa – say, Durban.

From Durban port, a transport service provider (could also be termed as an Intermodal service provider) under the employ of the carrier moves the cargo by rail from to Pretoria Rail Terminal followed by a road move to the consignee’s premises or a full road move from Durban port to consignee’s premises in Pretoria.

The rail and road service may be provided by the same transport service provider or could be done by two different service providers..

Here, neither the seller nor the buyer is arranging any contracts other than their contract of carriage with the carrier.

In this case, the carrier issues a Combined Transport Bill of Lading or a Multimodal Bill of Lading, and the whole operation is called a Multimodal Operation and it involves a single contract:

• Between Seller or Buyer and Carrier for sea movement from Felixstowe to Durban

The costs/risks for such contracts will, of course, depend on the Incoterms® used for this trade..

More often than not, the above movements on the land leg are outsourced by the carrier to transport service providers as a lot of the carriers don’t have their own infrastructure to carry out these movements.. However, here the carrier enters into direct contract with their service providers..

WHAT DOES A FREIGHT FORWARDER DO AND DO YOU NEED ONE?

Importing and exporting are key components for many lucrative businesses. International shipping could present great business opportunities for you, but may also seem daunting.

The process, paperwork, and regulations involved in international trade may seem intimidating. However, you can be a successful international shipper without getting caught up in the logistics of logistics. That's what a freight forwarder is for.

This blog covers the basics of what a freight forwarder is, what a freight forwarder does, why you should use a freight forwarder, and even how to find a freight forwarder for those who are interested in international shipping, whether importing or exporting.

Here are the most commonly asked question about freight forwarding and their answers:

What is a freight forwarder?

A freight forwarder is defined as follows:

A firm specializing in arranging storage and shipping of merchandise on behalf of its shippers. It usually provides a full range of services including tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance claims.

Freight forwarders usually ship under their own bills of lading or air waybills (called house bill of lading or house air waybill) and their agents or associates at the destination (overseas freight forwarders) provide document delivery, deconsolidation, and freight collection services. Also called forwarder.

That definition is a little wordy and sounds complicated, so let's just do a basic definition as follows:

A freight forwarder is a company that arranges your importing and exporting of goods.

So what does that actually mean in terms of what a freight forwarder does?

What does a freight forwarder actually do?

There is a lot that goes into arranging your international shipping. While the freight forwarder handles the details of your international shipping, it is important to know what a freight forwarder does not do in order to understand what a freight forwarder actually does.

A freight forwarder does not actually move your freight itself.

The freight forwarder acts as an intermediary between a shipper and various transportation services such as ocean shipping on cargo ships, trucking, expedited shipping by air freight, and moving goods by rail.

A freight forwarding service utilizes established relationships with carriers, from air freighters and trucking companies, to rail freighters and ocean liners, in order to negotiate the best possible price to move shippers' goods along the most economical route by working out various bids and choosing the one that best balances speed, cost, and reliability.

Freight forwarders handle the considerable logistics of shipping goods from one international destination to another, a task that would otherwise be a formidable burden for their client.

To comply with export documentation and shipping requirements, many exporters utilize a freight forwarder to act as their shipping agent. The forwarder advises and assists clients on how to move goods most efficiently from one destination to another. A forwarder’s extensive knowledge of documentation requirements, regulations, transportation costs and banking practices can ease the exporting process for many companies.

Why should I use a freight forwarder?

A good freight forwarding service can save you untold time and potential headaches while providing reliable transportation of products at competitive rates.

A freight forwarder is an asset to almost any company dealing in international transportation of goods and is especially helpful when in-house resources are not versed in international shipping procedures.

There are many advantages to using a freight forwarder. Here are a few listed:

• A Freight Forwarder provides to consolidators as well as individual shippers:
  • Non-Vessel Operating Common Carrier documentation
  • Bills of Lading
  • Warehousing
  • Risk Assessment and Management
  • Methods of International Payment
  • etc...
• A Freight Forwarder insists on personal communication and great customer service.

Whether the firm is large or small, the weight of the cargo light or heavy, the freight forwarder will take care of cargo from “dock to door” if requested to do so. This can include the correct filing of export documentation, all arrangements with carriers, packing, crating and storage needs. So, the small and medium-sized exporter need not deal with many of the details involved with the logistics of exporting their goods. In addition, freight forwarders typically charge modest rates for their services and have access to shipping discounts. Given the years of experience and constant attention to detail provided by the forwarder, it may be a good investment.

How do I find freight forwarder?

You're in luck! You've found one already. This is the website of Logical Maritime Services Limited, a trusted freight forwarder since 2005. We'll be happy to help you with your international shipping needs.

5 USEFUL TIPS FOR FINDING GOOD WAREHOUSING SERVICES

The name ‘warehousing’ doesn’t really represent the warehousing business very well. Most people think of warehousing as storing goods until they are needed. But there’s far more involved in modern warehousing and the more you know about it, the better equipped you will be to choose the best warehousing services for your business.

1. Location, Location, Location – It’s simple economics: the closer your warehousing is to your products’ place of origin and/or your markets, the faster and cheaper it will be to get them to your customers.
2. Research Different Storage Options – If you’re lucky, your products can be stored just about anywhere. If, however, as it is with an increasing number of products, yours have special storage requirements, like temperature/humidity control, hazardous materials storage or customs-bonded storage, you’ll need to be a little more discerning, and informed, about your warehousing.
3. Look for Value-Added Services – You can find warehouse space just about anywhere. But it’s the extra services that will make your life, and doing business, easier. Known as 3PL or third party logistics, these services include: pick/pack, labelling, kitting and shipping, and the companies that offer them are more likely to be among your best options.
4. Get Automated – Better warehouses are managed by high-tech, online systems that can track your inventory, orders and sales – and they put all that information on your desktop.
5. Make Sure Safety & Security is a Priority – Your goods can never be too safe. Not just from theft, but damage due to poor storage, fire and water.

WHAT TO DO WHEN THE ORIGINAL BILL OF LADING IS LOST?

Shipping documents do get lost in transit to a consignee or the bank or elsewhere.

So is it the end of the world for the shipper or consignee if this document which is one of the most important document in international trade and shipping is lost..??

What should be done when the OBL is lost..??

If a negotiable bill of lading is lost, stolen, or destroyed, a few measures can be taken

1. Place an advertisement in the local press about the “loss” or “nullification” of the original bill
2. A court order may be secured, which advises the carrier (shipping line) to deliver the goods to the holder of the title of the goods, based on a surety bond given by the entity claiming the goods, for an amount approved by the court.
3. The carrier also should receive a Letter of Indemnity indemnifying the carrier or any person injured by delivery, against liability under the outstanding original bill. The court also may order payment of reasonable costs and attorney’s fees to the carrier.
4. Certain lines accept a Letter of Indemnity if it is signed by a bank who would then take joint liability to return the original bills of lading (if found)..

However, a few precautions also needs to be taken such as:

1. An advertisement about the loss is never a complete defense as regards liability for wrongful delivery.
2. It is merely an evidence that the loss occurred and that the original title holder had the intention of cancelling the original bill of lading issued.
3. Carrier should understand who holds the title to the cargo and issue a duplicate set only to that entity as there have been cases where the entity that doesn’t hold the title to the goods has advertised about the loss and has convinced the carrier to issue the second set of originals whereas the first set is still in the hands of its legal owner and was not actually lost..

A Letter of Indemnity issued in lieu of loss of Original Bill of lading generally has wording as below. Please note that this is a “generic” format and most lines have their own requirement.

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“To the Owners and/or Charterers and/or operators and/or carrier and/or Agents and Masters of M.V.

In consideration of your issuing at my/our request a duplicate set of Bills of Lading for the goods mentioned below, viz.:

Goods: …………………………………………

No. of pkg.: …………………………………………

Description: …………………………………………

Marks: …………………………………………

Bill of lading or other contracts of carriage: …………………..

due to the fact that the original set has been lost I/we hereby agree and undertake to indemnify you and each of you from all consequences of so doing, and I/we undertake to hold you and each of you harmless and indemnified against any claims, liability, losses, costs, charges, fine damages and expenses (including any kind of legal expense) arising from in consequence of or in any way connected to anybody claiming delivery of the goods as owner or assignee or as the holder of any Bill of Lading originally issued for these goods.

1. In this connection I/we especially undertake to hold you and each of you harmless and indemnified against any loss on account of differences in rate of exchange or depreciation of currency and/or depreciation of value and/or loss caused by currency restrictions or exchange restrictions issued by any authority.Furthermore, I/we undertake to produce and deliver to you or each of you not only the duplicate set of Bills of Lading but also all Bills of Lading which were originally issued if these should later on be found.

2. In the event of any proceedings being commenced against you or any of your servants or agents in connection with the delivery of the goods as aforesaid to provide you or them from time to time with sufficient funds to defend the same.

3. If the vessel or any other vessel or property belonging to you should be arrested or detained or if the arrest or detention thereof goods as aforesaid to provide you or them from time to time with sufficient funds to defend the same.

ISSUANCE OF DUPLICATE BILL OF LADING IN CASE ORIGINAL IS LOST

4. As soon as all original Bills of Lading for the above goods shall have arrived and/or come into our possession, to produce and deliver the same to you whereupon our liability hereunder shall cease.

5. The liability of each and every person under this indemnity shall be joint and several and shall not be conditional upon your proceeding first against any person, whether or not such person is party to or liable under this indemnity.

6. This indemnity shall be construed in accordance with English law and each and every person liable under this indemnity shall at you request submit to the jurisdiction of the High Court of Justice of England. (This clause may be amended to show another jurisdiction where appropriate).

7. Where this indemnity has been joined in and countersigned by a bank, the issuer and the bank shall be jointly and severally liable hereunder.

Signature …………….

We hereby join in the foregoing undertaking:

Signature of the bank …………………”

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