TRANSPORTATION, INSURANCE AND BANKS

Forwarding documents

"

1. Write in the gap the right grammar form derived from the given verbs:

Classification

2. Follow the instructions below each sentence:

According to the type of transportation and to the various steps to be followed by the merchandise on its way from the seller to the buyer, there are different papers that have to accompany it.

(rephrase beginning with 'If it hadn't been for the different types of transportation.')

Waybills accompany goods transp--ted by rail -- road, air waybills air consignment notes are f-- air transport, water waybills inland bills of lading are f-- river boats while the bills of lading account f-- sea transp--t.

(fill in the gaps with the same 2 letters)

These represent __________ of receipt and evidence of the __________ concluded by the __________.

(put the nouns into plural and place them in the correct position in the sentence:' contract, carrier, form')

The invoice is the account of what the buyers have purchased. (turn into the Passive Voice)

There is a pro-forma invoice that may be sent prior to purchasing serving as a request for payment, or a quotation, or covering goods sent by approval.

(rephrase using: 'before, buying, demand, merchandise, supplied')

The final account, made out when the goods are dispatched, is the commercial invoice

(underline the synonyms of: 'bill, issued, delivered')

In the case of importing goods, a consular invoice is needed, an authenticated detailed document to provide the customs authorities with information about the contents of the cases, accompanied by other papers such as the certificate of origin, certificate of value, of weight etc.

(rephrase using: 'circumstance, required, offer, boxes, documents')

Once all arrangements for shipment ready and documents received by senders, they will inform the buyers, by a letter, called advice of dispatch, that orders have been executed and goods are on the way.

(rephrase using 'if')

Other sea transport documents

3. Match the beginnings with the ends:

4. Fill in with one word in each gap:

There ___ also: advice of shipment, request ___ book shipping space, order for ___ bill of lading, application ___ insurance, bill ___ entry, (phyto)sanitary certificate a.s.o.
&

Shipping

Goods are conveyed by land (rail or road), water or air. Thus, there can be sea and land transport, waterborne, inland water, horse-drawn, mechanical and hand transport.

Merchandise may be supplied carriage forward or carriage to pay or carriage paid, the terms of delivery agreed upon in the contract establishing which party is to bear the cost of transport.

Shipping instructions

Whether the goods are exported or imported, the forwarding agent in the exporting country contacts the forwarding agent in the importing country and by common agreement they see to the formalities and documents required for the purpose.

Freight

Freight is the price paid for the transport of goods by water. It is the price payable to the carrier for the safe carriage and delivery of the goods and is calculated by weight, measurements, value or per unit and this mode can be agreed upon in a contract called 'the charter party'.

A shipload is also called a freight. In the US a goods train is called a freight train and there are also freight planes.

Loading/discharging

"

1. Combine one word from the left with one from the right to get the right expression and fill them in the text:

Loading is effected mostly by mechanical means and sometimes also ___________, operations being supervised throughout loading and discharge by the mate and several ___________ and the time for loading and discharging is termed ___________.

2. Turn the former if into If3 negative and the latter into If2 positive:

If operations are done in less time, the shipper is entitled to a premium payable by the shipowner, called dispatch money, while if the time is exceeded, a penalty, called demurrage, is to be paid.

Chartering

3. Underline the right form in brackets:

In (command for / order to) secure shipping space, a shipper (in / of) goods enters into negotiations (without / with) a ship owner either directly (and / or) though a shipping broker so that the ship is (hired for / rented by) transportation.

4. Choose the structure that best fits:

a) those b) among c) between

a) made b) done c) produced

a) suitably b) more suitable c) most suitable

a) view b) landscape c) picture

a) a contract b) a contractual c) the contracts

a) in b) from c) of

a) concluding b) concluded c) conclude

a) as b) so c)such

a) at b) of c) to

From __1__ all the offers __2__ by these, the __3__ is chosen, as to the technical point of __4__ and to the freight, and __5__ is concluded, called the charter party. These might be: time-charter (for a specific period __6__ time), voyage-charter (contract __7__ for one or several voyages) or charter by demise (the charterer is regarded __8__ owner __9__ the vessel).

Insurance of goods

&

The idea of insurance is to obtain indemnity in the event of any happening that may cause loss of money; insurance is against risk.

Goods are normally insured for the full amount of their value which is calculated as:

cost of goods

amount of freight

insurance premium

a percentage of the total sum to represent a reasonable profit for the seller.

Types of insurance

"

1. Put the verbs in brackets into the specified form:

Among the various kinds of insurance, marine insurance ___________ (to be - Simple Present) the one of greatest importance, it representing the insurance of interests at risk - thus, property or earnings ___________(to insure - Passive Gerund) against dangers of the maritime adventure.

There is also an insurance against damages. These ___________ (to also call - Simple Present, Passive) 'averages' - term ___________ (to borrow - Past Participle) from French - and ___________ (to use - Simple Present, Passive) in this context bearing the meaning of 'damage'.

2. Choose the right structure in brackets:

Losses and/or averages may be (farther / further) distinguished (having had / having) a specific character and (thus / this) we can (talk about / speak at) total loss, particular average and general average.

The insurance policy

3. Rearrange the syllables in the underlined words:

The most portantim documents used in insurance are: the lipocy (which is the instrument dyemingbo the contract), the floating policy (covering large tytiquan of goods for long peodri of time), the ficateticer (the document veringco a certain period of time), the open cover (arrangement that the insured will have all mentsconsign insured by the insurer), the cover note (small domentcu as proof of insurance before policy is ready).

4. Rearrange the fragments to form a sentence:

W        and floating policies

W        policies and unvalued policies,

W        there might be valued

W        time policies and

W        voyage policies, mixed policies

5. Ask questions so that the underlined structures represent the answers:

Insurance contracts might be with average or with particular average (w.a. or w.p.a.), free from particular average (f.p.a.) or all risks (a.r.).

No claim is payable for damages below a certain percentage limit fixed in the policy (margin called franchise - between 2 and 5 %).

Indemnity and guarantee

6. Follow the instructions in brackets for the sentences:

A letter of indemnity (back letter) is a document under private seal (issued by a bank, institution or firm) whereby the issuing party binds itself (under certain conditions) to pay a certain amount of money (indemnify or exonerate from responsibility the contract in party - in whose favour the letter of indemnity has been issued) should a certain event, fact or damage occur.

(rephrase using If2)

Under a letter of guarantee the guarantor is binding himself to be answerable to the creditor in the event of a debtor failing to fulfil his obligation.

(rephrase using 'in case')

They are issued under certain circumstances: to avoid a ship being arrested, in disputes arising as result of a collision or salvage and in general average cases.

(rephrase the purpose clause using 'for fear')

Fill in the gaps with suitable words:

Goods are insured ______________ certain risks. They are normally ______________for the full ______________of their ______________. If they are found ______________arrival ______________the port ______________destination to be ______________, a claim for ______________will be made.

Details of the agreement ______________the client and the insurance ______________are to be found in the ______________, where the ______________ to be paid ______________the client is also mentioned.

When an agent ______________a damaged consignment, he will also look at the bill ______________ lading signed ______________ the captain of the ship. If the ______________of ______________is ______________, the captain has ______________the consignment as being in good ______________,and so the shipowners may be ______________for the costs of the damaged goods.

Sample-letters in transportation and insurance:

&

1. Shipping instructions

Dear Sirs,

Within the next few days you will receive for the account of Romexport, Budapest, 39 cases of earthenware to be shipped by the S.S. Fancy to Alexandria.

Kindly see that the goods are properly stowed in the holds of the ship and charge to our account.

Yours truly,

2. Freight discussed

Dear Sirs,

Please quote us your freight rate for cased cycles for shipment from London to Valetta, and let us know when you will be sailing to Malta during the next three months.

Yours faithfully,

Dear Sirs,

We have received your enquiry of 4 December, and can inform you that our current freight rate for cased cycles, London - Valetta, is £ ___ per metric tonne or 10 cubic metres, at steamer's option.

We sail once a week, and as Malta is our first port of call the voyage is about six days. We enclose our sailing card for M.V. Morecombe, which loads at the West India Docks, and our shipping instructions form. We would appreciate it if you would kindly complete and return the latter as soon as possible.

Yours faithfully,

"

1. Fill in with the missing words:

'an, to, of, us, the, for, next, able, coke'.

3. From charterer _______ brokers

We are _______ to secure _______ order for 2,000 tons _______ coal and _______ mixed, shipment Grimsby/Abo early _______ month. Please advise _______ of _______ lowest rate _______ suitable fixture (chartering).

2. Ask questions so that the underlined words represent the answers:

Broker's reply

We thank you for your letter of 15 March, and confirm our cable of today reading as follows:

MV SCANDINAVIAN READY TO LOAD EARLY APRIL FULL CARGO AT £3.25 GRIMSBY ABO PLEASE CONFIRM CHARTERING IMMEDIATELY

As soon as we receive your instructions we shall be pleased to go ahead with the fixture.

3. Underline the right word in brackets:

4. (Advice / Advices) of dispatch of export order

Dear Sirs,

It is (with / which) pleasure that we (advise / advice) you of the dispatch of your order 24 ¼ Hp Electric Motors which (had / has) been shipped today (on / in) our van to the Galati docs for shipment (with / by) S.S. . , sailing (on / at) 10^th April.

4. Choose the word that best fits in the gaps:

a) you b) your c) yours

a) are being b) be c) are

a) wooden b) wood c) woody

a) rough b) roughest c) rougher

5. a) in b) at c) on

6. a) has been b) was been c) is being

7. a) fall b) fill c) full

8. a) represent b) represents c) representative

9. a) any b) many c) all

a) maintain b) maintaining c) maintenance

a) an b) a c) the

a) of b) from c) for

The motors are exact to __1__ specifications and __2__ securely packed in strong __3__ containers, which should stand up to the __4__ transport conditions. We are sure they will reach you __5__ good order.

Each motor __6__ thoroughly tested and now carries our __7__ guarantee. Our technical __8__ will be pleased to advise you of __9__ point of fitting or __10__; they also hold __11__ adequate stock __12__ spare parts.

5. Rearrange the fragments in the sentence:

a)      expression of confidence in us which

b)      for the renewed

c)      of the same high standard of

d)      on the way to you and are

e)      sure that the goods are now

f)       this order shows, and you may be

g)      workmanship and material as you

We thank you ___ ___ ___ ___ ___ ___ ___ have experienced previously.

6. Put the fragments in order to get the sentence:

c     components, all of which we think

c     of other electrical machines and

c     to you for many years to come,

c     we enclose with this letter details

c     you may need at some time

c     as we hope to be of service

7. Put the following words in order to get the sentence:

Yours faithfully,

8. Fill in each space with suitable words:

5. Freight enquiry

Thank you __________ your enquiry __________ freight __________. We are enclosing details __________ our current __________ __________ standard containers __________ Liverpool __________ Amsterdam, and can __________ you that the S.S. Lima will be __________ cargo __________ Liverpool __________ 3 __________ 10 March __________.

We also enclose our __________ card __________ the Lima and our __________ instructions __________. Will you please __________ the latter and __________ it to us as soon as possible

&

6. Request of insurance

Dear Sirs,

Please effect insurance covering all risks for the following consignments:

15 cases of glassware and earthenware.

Marked .

Value $ .

The goods will be shipped to Messrs . by the S.S. . sailing on 23^rd June.

As we intend to forward the cover note the day after tomorrow please send it immediately.

Yours faithfully,

7. Inquiry for insurance rate

Dear Sirs,

Will you please quote us a rate for the insurance against all risks of a shipment of : . cases of cycles from . to . , by vessel of the . line; value £ .

The insurance is to be warehouse to warehouse, as from the 15^th April.

Yours faithfully,

8. Letter of indemnity

We, the undersigned ., hereby certify that we are aware that, in connection with the under mentioned goods, viz.:

33 jute bags soya 1980 kilos,

shipped today and destined for Constanta, the following has been ascertained: "many bags broken and repaired".

However, with a view to avoiding any misunderstandings with third parties, we requested that no mention be made of the above in the bills of lading covering these goods. On the other hand, we hereby undertake unconditionally to indemnify the master of the steamer, the owners and their representatives against all consequences, losses and damages, which might arise from the insurance of the clean bills of lading, and do irrevocably authorize them, in the event of the third parties enforcing any claims against them, to make any arrangements with the said third parties, for our account, which the said master, shipowner or representative may deem advisable.

Finally, we declare that we give our consent to a copy of this document being issued, if required, to receivers and any other persons directly or indirectly concerned.

Shipping agency and brokers

Banking Operations and Correspondence

"

1. Underline in the text the antonyms of the following words, appearing in the given order:

'public, little, eventually, informal, general, employees'

The private nature of much of the business done with banks reduces correspondence with them chiefly to routine matters, formal instructions, advice and requests for information, most done by special forms while confidential matters are dealt with in interviews between bank managers and clients.

2. Write the right form of the words given:

Documents

&

Nevertheless, they easily find their way among the other categories that make the object of correspondence documents,

either having a form very similar to that of a letter or being merely used in correspondence, as the basis or reference point of the replies, which are, indeed, proper letters.

Such are:

A        the instruments of payment

the draft or bill of exchange

the cheque

the promissory note

A        the methods of payment

the documentary letter of credit

the documentary collection

the payment order

Types of letters

"

1. Find in the text the synonyms of the following words:

'private, problems, particular, announced, explained, strange, conversation'

However confidential and strict the matters with the banks are, certain things can be dealt with or at least informed or clarified by means of letters. So, correspondence with banks is not such odd a question of discussion after all.

2. Put the verbs given at the -ing form in the proper place in the text:

'acknowledge, concern, confirm, ask'

There is correspondence on the basis of the documentation ______________ payment, ______________ receipt of certain documents, _____________ for payment, _____________ the fact that payment orders have been received or fulfilled etc.

3. Choose the word that do not fit in the gaps of the text:

a) addressed b) sent c)copied

a) many b) particular c) certain

a) previous b) former c) inform

a) banks b) bank c) banking

a) data b)date c)information

a) different b) various c) same

a) giving b) offering c)asking

a) to b) concerning c) on

There are letters __1__ to banks and asking for __2__ information or being just acknowledgments of __3__ letters from the banks and there are those sent by the __4__ to offer some requested __5__ or announcing of __6__ services a.s.o. Thus, there can be:

o      letters asking for references or status inquiries

o      letters __7__ credit information

o      guarantee letters

o      correspondence __8__ methods and instruments of payment

and, respectively, the replies to these.

&

Samples

Bank customer requests an overdraft

The Manager,

Southland Bank Ltd.

Westerham

Kent K32 GN4

Dear Sir,

Further to our interview of yesterday, I request your permission to overdraw my account up to a limit of £ 1,000 between 1 January and 1 August 2004.

As I explained to you yesterday, I have during this period to meet certain capital costs incurred in the expansion of my business. The benefit of this expansion will not be felt till around 30 June, when considerable sums will be due to me from home and overseas customers. As security, share certificates worth £ 500 will be deposited with you and a life endowment policy for £300 will be assigned to you.

I look forward to an early reply.

Yours faithfully,

J. Thomas

"

1. Follow the instructions in brackets under each sentence:

Bank's reply to request for an overdraft

Dear Mr. Thomas

I have given your letter careful consideration and agree to grant you an overdraft of £1,000 available till 1 August 2004, subject to the usual proviso that there is no change in the position as at present existing.

( rephrase using If1)

Will you please therefore let me have the securities mentioned in your letter; it will be in order for you meanwhile to anticipate the overdraft.

(rephrase using: 'kindly, give, cited, OK, meantime')

Interest __________________ at 11 % and __________________ on a daily balances.

(Fill in with the Passive Simple Future of the verbs 'charge' and 'calculate' )

I rely on you to clear the outstanding balance by 1 August, and I trust you will be successful in expanding your trade.

(rephrase using: 'owed, believe, manage')

Yours sincerely,

D.L. Rose

Manager

2. Match the beginnings of the sentences with their endings:

Bank's reply to a letter of mistaken account warning

Dear Mr. Jones,

Sincerely,

&

Asking for reference - pattern

"

1. Choose the words that best fit in the gaps:

a) like b) at c) in d) for

a) your b) yours c) you're d) you

a) a b) the c) an d) -

a) is b) are c) were d) be

a) from b) for c) to d) of

a) sue b) see c) us d) use

a) on b) above c)over d) in

a) this b) - c) these d) that

9. a) every b) very c) vary d) ever

a)dollar b) doll c) older d) old

a) an b) end c) and d) ad

a) they're b) there c) their d) they

Positive reply to status inquiry

Dear Sirs,

__1__ reply to __2__ inquiry of the . June, regarding __3__ firm in question, the following information __4__ given in confidence __5__ your private __6__ only, and without responsibility __7__ the part of __8__ bank:

Exporters of __9__ high and __10__ standing highly respectable __11__ considered good for __12__ engagements.

Yours truly,

2. Arrange the fragments in the right order to get the two sentences:

Negative reply to status inquiry

Gentlemen,

a)

c     as we do not consider their finance

c     business with the firm mentioned

c     have ceased for over a year to do

c     in compliance with your request

c     of the . Oct., we can only say that we

c     to be in healthy condition

b)

and without

any obligation.

as entirely confidential

please treat

this information

Yours truly,

.

&

Bill of exchange

Bill of Exchange for $.

New York, December, 4^th 2004

Sixty days after sight of this first bill of exchange (second and third of the same date and tenor being unpaid) pay to the order of Commerce Bank, New York, the sum of ten thousand American dollars for value received. Please charge the amount to the account of Messrs. Tahidi & Co.

Signatures,

To the textile company Ltd.

3 Fragrance Square

New York

Order Cheque

No.

London, July 5^th , 2004

Barclay's Bank Limited

Pay to Mr. J. Greans or to order the sum of two hundred pounds.

John Brown

Payment Order

Irrevocable documentary credit

Dear Sirs,

We hereby issue in your favour this documentary credit which is available by negotiation, accompanied by the following documents: Invoice in 3 copies, full set of Bills of lading, insurance policy.

Covering 10 tons of fertilizers.

Despatch from Constanta to London.

Partial shipment: not permitted.

We hereby engage that payment will be duty made in conformity with the terms of this credit.

Yours faithfully,

Amendment of credit - telex

Our credit no.date. amended as follows:

for first lot of goods to be delivered in Dec. 2004 delivery terms extended till 1^st July 2005 stop packing to be 90 kilos net bags instead of existing stop partial deliveries are allowed.