The purpose of this article is to provide a basic understanding of the term FOB (Free on Board), which is one of the key terms in international trade. We will also examine how FOB is applied and what responsibilities are placed on the parties to a contract. FOB remains one of the most popular and widely used delivery terms in maritime shipping. General Meaning of FOB FOB means that the seller is responsible for delivering…
Organic products, including organic corn, are gaining increasing popularity in the global market. These products attract consumers with their quality and safety. However, despite the high standards and thorough inspections associated with the production and certification of organic products, challenges and disputes often arise. In this article, we will examine the important aspects of organic corn certification and provide an example of a Gafta arbitration decision to illustrate the potential risks and consequences of such…
In maritime shipping, time is literally money. The concepts of laytime and demurrage are fundamental to commercial shipping operations and represent a critical area of focus for maritime lawyers, shipowners (commonly called “Owners” in legal documents), and charterers alike. This article examines these concepts under English law, which remains the predominant legal framework for international shipping contracts worldwide. Understanding Key Definitions Before turning to the details, consider a simple taxi analogy. The first few minutes…
In international trade of agricultural commodities, issues of calculating damages for non-delivered goods are of key importance. In this article, we will consider how damages are calculated under Gafta and FOSFA contracts, as well as under English law. General Principles of Calculating Damages under English Law Under English law, damages for breach of contract are calculated on the assumption that the breaching party acts in the least favourable manner for the claimant. This rule is…
Transportation by sea is rightly considered the most advantageous way of delivery, especially in the international transportation of bulky cargo. Time and cost savings, convenience, and reliability are just some of the pros of maritime logistics. The concept of freight is inextricably linked with this type of shipping. In fact, it is a charge for the place that the goods occupy on a particular ship. But to see the full picture and understand what chartering…
This article is a general guide to LMAA (London Maritime Arbitrators Association) arbitration. What is LMAA? LMAA is an association of practising maritime arbitrators. It was founded in 1960 and is based in London. The Association adopts arbitration rules and brings together maritime arbitrators from around the world. Most maritime disputes are resolved under the Association’s rules. However, LMAA is not an arbitration institution: it does not participate in the resolution of disputes and does…
This article aims to provide a basic understanding of CIF and CFR terms. It also discusses some of their variants – CIFFO and C&FFO. These terms are usually used with Incoterms. Incoterms, or International Commercial Terms, are a set of standardized rules published by the International Chamber of Commerce (ICC) to facilitate international trade. These rules outline the responsibilities, costs, and risks of the parties in international trade. When parties refer to Incoterms, they incorporate…
This article is a general guide to the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC). ICAC Fundamentals at the Ukrainian Chamber of Commerce and Industry The ICAC at the Ukrainian Chamber of Commerce and Industry was established in 1992 to resolve international commercial disputes. It operates in accordance with the Law of Ukraine “On International Commercial Arbitration” and its own procedural rules (the Rules). ICAC provides services for the…
In contracts that incorporate FOSFA 54, references to FOSFA HH54 or simply HH54 might appear. What does this signify, and why is it necessary? Short answer HH54 is a standard clause extending the shipment period. It’s optional because FOSFA 54 doesn’t inherently include an extension clause. This clause is part of FOSFA’s Optional & Special Clauses, available for purchase here. Detailed answer FOSFA 54 is a standard CIF contract (Contract for vegetable and marine oil…
This is an introductory article on the LCIA (London Court of International Arbitration) arbitration. A brief history of the creation of the LCIA The first steps to establish the LCIA were taken as early as the end of the 19th century. In 1883 a committee was set up to draw up proposals for a tribunal to deal with cross-border commercial disputes. However, it was not until 1891 that the final scheme was approved, and a…
