Block 1. Execution of contractual obligations relating to transportation and packing

 

LEAD-IN

¨ What problems can arise out of sales contracts in connection with transportation?

¨ What role does packing play when goods are transported under contracts?

¨ In what ways does dispatch of goods is stipulated in sales contracts?

¨ What kind of instructions is sent before shipment?

 

FOCUS 1

 

LETTER 1 (Awaiting shipping instructions)

October 19, 20…

Dear Mr. Hastings,

Contract No.865

We would like to inform you that Units 67-89 deliverable against Contract No.865 are ready for dispatch. You underlined in your letter dt Oct 12 that prompt delivery is essential. In our turn we are glad to say that by making a special effort we have managed to improve by a few days on the delivery date stated on the schedule.

 

We await your instructions on shipment and the moment we hear from you we will forward you our advice of shipment.

 

Please acknowledge receipt.

 

Sincerely yours,

Benedict Hayes

Logistics Manager

 

LETTER 2 (Particulars of packing)

December 16, 20...

Dear Ms.Rowan,

 

Our clients Gregg & Sons, Ltd. asked us to inform you of packing we usually provide for them as their forwarders.

 

We will do our utmost to pack the equipment securely and properly so that it could withstand both overseas and overland transport as well as transshipment. Our company will be held responsible for all losses and/or damage to the equipment owing to inadequate or unsuitable packing or greasing the parts that are liable to rust.

 

All cases should have marks showing the two parts of the case under which the slings may be inserted in order to keep balance in lifting. A detailed packing list is to be inserted in each case.

 

If you have any observations we will be glad to introduce further improvements. Looking forward to hearing from you soon.

 

Sincerely yours,

Edward Craig

Managing Director

 

LETTER 3 (Advice of readiness for shipment)

 

December 2, 20…

 

Dear Mr. Osborn

Contract No.234

We are glad to advise you that our sub-contractors supplied the components required against Contract No. 234 ahead of schedule. We have already packed the assembled products and the consignment awaits collection at our warehouse.

 

Arrangements for shipment, cif Stockholm, have been made with Messrs. Granny & Brent Ltd. acting on our behalf as our forwarding agents. As soon as we receive a statement of charges from them, we will arrange for shipping documents to be sent to you through Barclays Bank against our draft for acceptance, as agreed. Hope to hear from you soon. We remain,

 

Sincerely yours,

Edwin Beverley

Logistics Department

 

LETTER 4 (Nominating a vessel)

 

January 4, 20…

 

Dear Mr. Appleton,

Contract No. 87585/76 dt Nov.23, 20...

 

Referring to our letter dt December 8, 20… we would like to remind you that we experienced difficulties in securing tonnage for sea carriage of the cargo against the above contract. In December we failed to find the appropriate tanker with the required position for late January – early February, 20… (ETA – March 1-5).

 

We are glad to inform you that we have finally placed the tanker Liverpool against the above contract to lift the balance of Fuel Oil at Hamburg on January 29-February 5, 20….

 

As nothing can hamper now the execution of the contract, we will ship the remaining cargo as scheduled.

 

We remain,

Yours sincerely,

Anthony Isham

Manager

 

LETTER 5 (Amending the shipping programme)

February 6, 20…

Dear Mr. Isham,

 

Contract No. 87585/76 dt Nov.23, 20...

We thank you for your letter (reference TM No.34) of January 4, 20…. We are complelled to inform you that we cannot accept the cargo to be dispatched by the tanker Liverpool with position for February owing to storage congestion at our refinery.

 

We would be obliged to you if you could nominate another tanker with position for March, amending the shipping programme accordingly. We would appreciate your agreeing to our non-compliance with the original delivery estimates.

 

We will extend the LC upon your confirmation of the amendments accordingly.

 

Please acknowledge receipt as soon as possible

 

Yours faithfully,

Erick Appleton

LETTER 6 (Delay in delivery)

 

September 12, 20..

 

Dear Mr. Sanford

 

Contract No. 6436

We regret to inform you that the goods shipped by you on August 23, 20… have not reached our client so far. The lot was collected by your carrier as scheduled. We hold your carrier’s receipt no. 0295.

 

As our clients are in need of the above goods, we would ask us to clear up the cause of the delay which is now 5 days. We would appreciate your stating the revised date of delivery.

 

Please treat this matter as one of extreme urgency. Awaiting your reply.

 

Sincerely yours,

Rolf Preston