.876

SCH.

c. 37

Merchant Shipping (Liner Conferences) Act 1982

(b) Where there is a loyalty contract, the extent of actual or liquidated damages and/or penalty shall be specified in the contract. The member lines of the conference may, how- ever, decide to assess lower liquidated damages or to waive the claim to liquidated damages. In any event, the liquidated damages under the contract to be paid to the shipper shall not exceed the freight charges on the particu- lar shipment, computed at the rate provided under the contract:

(c) The shipper shall be entitled to resume full loyalty status, subject to the fulfilment of conditions established by the conference which shall be specified in the loyalty arrange-

ment;

(d) The loyalty arrangement shall set out:

(i) A list of cargo, which may include bulk cargo shipped without mark or count, which is specifically excluded from the scope of the loyalty arrangement;

(ii) A definition of the circumstances in which cargo other than cargo covered by (i) above is considered to be excluded from the scope of the loyalty arrangement; (iii) The method of settlement of disputes arising under the loyalty arrangement;

(iv) Provision for termination of the loyalty arrange- ment on request by either a shipper or a conference without penalty, after expiry of a stipulated period of notice, such notice to be given in writing; and

(v) The terms for granting dispensation.

4. If there is a dispute between a conference and a shippers' organization, representatives of shippers and/or shippers about the form or terms of a proposed loyalty arrangement, either party may refer the matter for resolution under appropriate procedures as set out in this Code.

Merchant Shipping (Liner Conferences) Act 1982

c. 37

877

to the notice given by shippers, shippers shall automatically have the right, without prejudicing their loyalty status, to use any avail- able vessel for the carriage of their cargo.

Article 9

Availability of Tariffs and Related CondiTIONS AND/OR REGULATIONS

Tariffs, related conditions, regulations, and any amendments thereto shall be made available on request to shippers, shippers' organiza- tions and other parties concerned at reasonable cost, and they shall be available for examination at offices of shipping lines and their agents. They shall spell out all conditions concerning the applica- tion of freight rates and the carriage of any cargo covered by them.

Article 10

ANNUAL REPORTS

Conferences shall provide annually to shippers' organizations, or to representatives of shippers, reports on their activities designed to provide general information of interest to them, including relevant information about consultations held with shippers and shippers' organizations, action taken regarding complaints, changes in member- ship, and significant changes in service, tariffs and conditions of carriage. Such annual reports shall be submitted, on request, to the appropriate authorities of the countries whose trade is served by the conference concerned.

Sci.

Article 8

DISPENSATION

1. Conferences shall provide, within the terms of the loyalty arrangements, that requests by shippers for dispensation shall be examined and a decision given quickly and, if requested, the reasons given in writing where dispensation is withheld. Should a con- ference fail to confirm, within a period specified in the loyalty arrangement, suflicient space to accommodate a shipper's cargo within a period also specified in the loyalty arrangement, the ship- per shall have the right, without being penalized, to utilize any vessel for the cargo in question.

2. In ports where conference services are arranged subject to the availability of a specified minimum of cargo (i.e. on inducement), but either the shipping line does not call, despite due notice by shippers, or the shipping line does not reply within an agreed time

Article II

CONSULTATION MACHINERY

1. There shall be consultations on matters of common interest between a conference, shippers' organizations, representatives of shippers and, where practicable, shippers, which may be designated for that purpose by the appropriate authority if it so desires. These consultations shall take place whenever requested by any of the above-mentioned parties. Appropriate authorities shall have the right, upon request, to participate fully in the consultations, but this does not mean that they play a decision-making role.

2. The following matters, inter alia, may be the subject of consultation:

(a) Changes in general tariff conditions and related regulations ; (b) Changes in the general level of tariff rates and rates for

major commodities;

(c) Promotional and/or special freight rates;

(ɗ) Imposition of, and related changes in, surcharges ;

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