Thursday, July 25, 2013

NOTE OF PROTEST - Abhishek Sabharwal




14.  NOTE OF PROTEST

A “Note of Protest” is basically a declaration formally recorded or lodged by the Master of circumstances beyond his control which may give, or may have given, rise to loss or damage. In other words, Notes of Protest are lodged to record occurrences that may have caused loss or damage which are at that moment unknown or not fully determinable or quantifiable but could give rise to claims at a later date, e.g., shifting damage to cargo which cannot be accessed until over-stowing cargo is discharged, the possibility of sweat damage to cargo because of not being able to follow prescribed ventilation procedures due to adverse weather conditions, possible pounding or panting damage to the ship’s hull that may remain unknown until sighted a next dry docking, possible damage due to the vessel suspected to have “bottomed” during a river / shallow water transit, etc. Such declaration must be made before a notary public, magistrate or other authority. In many ports, the agents can lodge the Note of Protest on behalf of the Master.

A Note of Protest must generally be lodged within 24 hours of arrival port, but if this is not possible the Master may add a statement in the Note of Protest to the effect that the Note of Protest could not be tendered earlier due to circumstances beyond the Master’s control.

The following list, enumerates some of the circumstances in which a master should note protest.

14.1     “Whenever the vessel has encountered heavy weather which might have resulted in damage to the cargo or the ship.

14.2     WHEN FROM ANY CAUSE THE SHIP IS DAMAGED, or there is reason to fear that damage may be sustained.

14.3     When through stress of weather it has not been practicable to adopt normal precautions in the matter of Ventilation of perishable cargo.

14.4     When any serious breach of C/P terms is committed by the Charterer or his agent, such as refused to load, unduly delaying loading, loading improper cargo, refusal to pay demurrage, refusal to accept B(s)/L in the form signed by the master etc.  (IN SHORT, ANY MAJOR PROBLEM WITH CARGO, C/P OR B/L.)

14.5     When cargo is shipped in such condition that it is likely to suffer deterioration during the voyage.  In this case however the protest will not be effective unless the B/L was endorsed to show the condition of the cargo at the time of shipment.

14.6     In all cases of general average.



14.7     In case stevedores refuse to accept a damage report.

Notes of protest must be supported by appropriate log entries, and if required, with statements from the master and others.

In certain countries the note of protest has to be made on a special form.  Always seek assistance of the local agents to find out the correct procedure.

A note of protest may need to be extended as at the time when a protest is originally noted it may not have been definitely established whether in fact loss or damage has occurred or not or the full extent of damage may not be known.

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