TNAG-2893-FCO40-4166-Hong-Kong-localisation-of-laws-merchant-shipping-and-carria-1993 — Page 69

-878

Sch.

c. 37

Merchant Shipping (Liner Conferences) Act 1982

(e) Loyalty arrangements, their establishment or changes in their

form and general conditions;

(f) Changes in the tariff classification of ports ;

(g) Procedure for the supply of necessary information by shippers concerning the expected volume and nature of their cargoes; and

(h) Presentation of cargo for shipment and the requirements re-

garding notice of cargo availability.

3. To the extent that they fall within the scope of activity of a conference, the following matters may also be the subject of consultation:

(a) Operation of cargo inspection services;

(b) Changes in the pattern of services ;

(c) Effects of the introduction of new technology in the carriage of cargo, in particular unitization, with consequent reduction of conventional service or loss of direct services; and (d) Adequacy and quality of shipping services, including the impact of pooling, berthing or sailing arrangements on the availability of shipping services and frieight rates at which shipping services are provided; changes in the areas served and in the regularity of calls by conference vessels.

4. Consultations shall be held before final decisions are taken. unless otherwise provided in this Code. Advance notice shall be given of the intention to take decisions on matters referred to in article 11, paragraphs 2 and 3. Where this is impossible, urgent decisions may be taken pending the holding of consultations.

5. Consultations shall begin without undue delay and in any event within a maximum period specified in the conference agreement, or in the absence of such a provision in the agreement, not later than 30 days after receipt of the proposal for consultations, unless different periods of time are provided in this Code.

6. When holding consultations, the parties shall use their best efforts to provide relevant information, to hold timely discussions and to clarify matters for the purpose of secking solutions of the issues concerned. The parties involved shall take account of each other's views and problems and strive to reach agreement consistent with their commercial viability.

Merchant Shipping (Liner Conferences) Act 1982

c. 37

879

(a) Freight rates shall be fixed at as low a level as is feasible from the commercial point of view and shall permit a reasonable profit for shipowners;

(b) The cost of operations of conferences shall, as a rule, be evaluated for the round voyage of ships, with the outward and inward directions considered as a single whole. Where applicable, the outward and inward voyage should be con- sidered separately. The freight rates should take into account among other factors, the nature of cargoes, the interrelation between weight and cargo measurement, as well as the value of cargoes;

(c) In fixing promotional freight rates and/or special freight rates for specific goods, the conditions of trade for these goods of the countries served by the conference particularly of developing and land-locked countries, shall be taken into account.

Article 13

CONFERENCb Tariffs and Classification of Tariff RatES

1. Conference tariffs shall not unfairly differentiate between shippers similarly situated. Shipping lines members of a conference shall adhere strictly to the rates, rules and terms shown in the tariffs and other currently valid published documents of the con- ference and to any special arrangements permitted under this Code. 2. Conference tariffs should be drawn up simply and clearly. containing as few classes/categories as possible, depending on the commodity and, where appropriate, for each class/category: they should also indicate, wherever practicable, in order to facilitate statistical compilation and analysis, the corresponding appropriate code number of the item in accordance with the Standard Inter- .national Trade Classification, the Brussels Tariff Nomenclature or any other nomenclature that may be internationally adopted; the classification of commodities in the tariffs should, as far as practic- able, be prepared in co-operation with shippers' organizations and other national and international organizations concerned.

Sci.

CHAPTER IV

FREIGHT RATES

Article 12

CRITERIA FOR Freigir-Rate DeterminATION

In arriving at a decision on questions of tariff policy in all cases mentioned in this Code, the following points shall, unless otherwise provided, be taken into account:

Article 14

General Freight-Rate Increases

1. A conference shall give notice of not less than 150 days, or according to regional practice and/or agreement, to shippers' organi- zations or representatives of shippers and/or shippers and, where so required, to appropriate authorities of the countries whose trade is served by the conference, of its intention to effect a general increase in freight rates, an indication of its extent, the date of effect and the reasons supporting the proposed increase.

2. At the request of any of the parties prescribed for this purpose in this Code, to be made within an agreed period of time after the