Transhipment is Defiend in Law
S J Tubrazy
Transhipment means transfer of the contents of a conveyance from one to another. Its implications are that the processes of transfer may cause delay in transit or damage to the contents or increase the carrier’s charges or make the carriage of the contents after transhipment less satisfactory than at the outset. The significance of transhipment, therefore, varies according to the trade of the parties, the goods shipped and the nature of contract. In a contract of insurance its importance is obvious because of the likelihood of damage and the effect of the likelihood on the safety of the articles in transit. Between a carrier and his customer its significance rests on the undertaking of the carrier imposed by law, or practice of trade, or arising from the contract to carry the subject matter of the contract in the same vessel or conveyance. A carrier by sea is regarded as bound to carry the cargo in the same vessel, yet transhipment does not discharge the parties of their obligations merely by reason of transhipment. The cargo may be carried to the destination in the interests of the owner of the cargo or of the ship owner, after the ship is disabled from continuing her voyage or the voyage is abandoned, in another ship or through the agency of a different ocean liner. The international laws, customs and usages allow transhipment in C. I. F. contracts.