Domestic and ocean shipping

Transport system and types of cargo

Discounting and protesting a bill of exchange

If the payee needs his money before the bill of exchange reaches maturity, he can discount it. This means he can take it to a bank which will pay him its value minus interest and bank fees (the discount). The amount deducted depends on the length of time before the bill reaches maturity and on how high the risk is that the drawee won’t pay.

In turn the bank may be able to have the bill of exchange rediscounted at the central bank. However, the central bank only rediscounts a limited number of bills, depending on how high the inflation rate is (if inflation is high, fewer bills will be rediscounted in order to prevent more money going into circulation).

A bill of exchange can also be protested. A protest is a formal written notice that a bill of exchange has been dishonoured, and is needed before the payee can go to court to recover the money. If the drawee does not pay the bill of exchange when it is presented to him at maturity, it will be presented to him at maturity, it will be presented to him again within two working days, this time by a notary public. If the drawee still does not pay, the notary stamps and signs the bill as a record of the dishonor. Such a dishonour is a serious matter it may be published in trade journals and at the Chamber of Commerce, in which case the drawee will lose his good reputation.

(1 246)

A good transport system is needed if goods are to be traded efficiently. A consignor (someone who dispatches goods) can choose to send his goods to the consignee (the person who receives the goods) by water, which covers both domestic (national) and ocean (international) shipping; land, by road or by rail; air.

When choosing most suitable form of transport, the consignor has to consider what kind of goods are to be sent – perishable goods have to be transported more quickly than non-perishable goods, for example; the place of destination – not all destinations can be reached by all forms of transport; the cost of each form of transport, how fast it is and how safe. The consignor may have to decide whether speed is more important than safety.

When goods are being transported, they are called “cargo” or “freight”. Cargo can be divided into three categories: 1) general cargo – goods sent packed in boxes, cases, chests and other containers; 2) bulk cargo – large quantities of items such as sand, grain and coal when sent unpacked; 3) bulky cargo – large individual items such as cars which have to be sent unpacked.

(1 140)

When sending goods by ship, the carrier is the shipping line.

Domestic shipping runs on inland waters such as rivers, lakes, canals. One important service provided by domestic shipping is the feeder (приток реки, канал) service, which brings goods along inland waterways to the international quays where they can be loaded directly onto ocean-going ships for transportation abroad. This saves considerable time and effort compared with transporting goods to the port by road or rail and then bringing them to the quay for loading. The transport document used specifically for domestic shipping is the river bill of lading (also called the inland waterways bill of lading).

The goods are also transported on the open sea or ocean. There are several types of sea-going ship which carry cargo. Liners sail on fixed routes and keep to a schedule. They mainly transport general cargo. Tramps take any cargo they can and sail to any port required. They do not follow a schedule or any fixed route. Coasters travel from one port to another along the coast of a country. They are not used for international shipping. The transport document used specifically for ocean shipping is the ocean bill of lading.

(1 230)

Дата добавления: 2017-02-01; Просмотров: 141; Нарушение авторских прав?; Мы поможем в написании вашей работы!