Introduction

The subject of carriage of goods by sea is one of paramount importance to international trade. Despite the existence of other forms of transport such as rail, road and air, sea carriage remains the most practical and often most financially viable option for traders. This is especially true where the buyer and seller are located in different countries. In 2009, world seaborne trade fell overall by 4.5 per cent following the economic collapse of 2008. The total goods loaded in 2009 amounted to 7.8 billion tons; this was down from 8.2 billion tons loaded in 2008. Although these figures may initially seem disappointing and indicate a lack of demand for seaborne transport, this is not the case. In its 2010 trend report, the United Nations Conference on Trade and Development (UNCTAD) stated that the figures for 2009 were not indicative of the overall picture for the future. Rather, statistics showed that developing countries (mainly those in Asia) continued to increase the amount of trade conducted despite the global economic upheavals. Asia holds a 41 per cent share in goods loaded worldwide. Also, the ever-growing demand for crude oil resulted in an upsurge in the tanker trade. Dry bulk cargoes, in particular ore used for steel, continued to drive demand in this area as well.

There are many issues to be considered when shipping goods by sea, including the parties involved in the process, the nature of the cargo, the type of vessel to be used, as well as the most suitable type of contract for the voyage.