x Does your business have import-export shipments that need to understand many specialized terms, including SOF?
x Are you interested in the content, role, and regulations of SOF in the Sea Freight Contract?
x Do you want to learn more about the importance of SOF in the Port-Port maritime transport process?
at Proship.vn will collect knowledge from many reliable sources to clarify what the term SOF is, what important role SOF plays, what the content in SOF includes,...At the same time, Proship Logistics also Give an example showing the importance of SOF in the import-export process of goods.
What is SOF?
What is SOF? SOF (Statement of Facts) or "cargo logbook", "cargo handling record" in the contract is a record of all events and activities that occur during the process of the ship receiving and unloading goods at the port.
This is an important document in the maritime transport contract, recording in detail the time and process of performing tasks related to loading and unloading goods. SOF is the basis for contract parties, including ship owners, exporters, importers and related parties, to monitor and determine work progress, thereby calculating costs and related responsibilities. mandarin.
Content and regulations of SOF (Statement of Facts)
What are the main contents and regulations of SOF? Specifically includes:
Start and end time of loading/unloading goods
Timelines when the loading or unloading process begins and is completed at the port are recorded in detail on the SOF. Helps track goods transportation progress and calculate contract implementation time.
Time the ship arrives at the port
SOF (Statement of Facts) records the time the ship arrives at the port, the date and time the ship arrives at the port and is ready for loading and unloading goods. This time is very important to determine when to start calculating demurrage or dispatch fees.
Problems and delays arise
Any incidents, delays or interruptions in cargo handling must be recorded in the SOF. For example, bad weather, ships waiting for technical reasons, or lack of loading and unloading facilities at the port. These events directly affect the calculation of detention fees or future disputes over liability.
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Other support activities
SOF records details of support activities such as customs checks, loading goods into warehouses, loading and unloading goods from warehouses to ships, and other related tasks. Every activity is recorded to ensure transparency in the shipping process.
Signatures and confirmations of relevant parties
SOF must have enough signatures of relevant parties at the loading/unloading port so that when a dispute occurs, the SOF will have legal effect. Includes the signature of the representative of the shipping agent at the port, and of the port representative. Clearly state the time and date of signing the minutes.
Other factors during transportation
SOF can record information about weather conditions in port, ship arrival and departure conditions, or any events that may affect the loading or unloading process.
Role of SOF in maritime transport contracts
In maritime transport contracts, what is the role of SOF? That is:
Basis for calculating parking fees and reward fees
SOF (Statement of Facts) plays the role of determining incurred fees such as demurrage when loading and unloading takes longer than the specified time, or bonus fees (dispatch) when completing the work sooner. Based on the recorded time, the parties can accurately calculate the fees to be paid or received.
Confirm loading and unloading operations
SOF helps confirm that the loading and unloading process has taken place according to contract regulations and records actual events that have occurred. This is an important basis to ensure that participating parties properly carry out their responsibilities in loading and unloading goods.
Tools for managing and controlling progress
SOF is a tool to help ship owners and related parties monitor and manage work progress. If any incident occurs, the parties can react promptly and adjust plans to minimize negative impacts on the transportation process.
Dispute resolution
If there is a dispute over time, progress or loss of goods, SOF is clear and valid evidence. This document details important events and helps parties clarify responsibilities, thereby resolving legal or commercial conflicts.
An example of the importance of the SOF Cargo Log
Proship has recorded the following example showing the importance of the SOF Cargo Log in import and export:
Summary of incident examples
The Plaintiff (carrier) and the Defendant (shipper) signed a Trip Transportation Contract (“Contract”) to transport clinker by sea from Cam Pha port, Vietnam to the port. Chittagong, Bangladesh. According to Article 7 of the Contract ("Contract"), the unloading rate is 2,500 - 3,000 tons per working day, weather permitting, including Fridays, Sundays and holidays on the basis of 4 25-ton cranes operating. At the same time, if not, calculate according to the corresponding ratio. The plaintiff (“ND”) brought the ship to Cam Pha port to load goods.
At Chittagong port, the Defendant (“BD”) unloaded goods slower than specified in the Contract. The ship is equipped with the above 4 cranes but only 1 crane is operational, the remaining 3 cranes are ready to unload but are not operating because there are not enough means to unload, as clearly shown in the SOF provided by the Agent. According to Article 9 of the Contract, the bonus is 3,500 USD for each day the goods are completed before due date/penalty is 7,000 USD for each day the goods are overdue. Bonus/penalty (if any) at loading port is paid along with freight.
Bonus/penalty (if any) at the port of discharge will be paid within 15 working days from the date of completion of unloading and receipt of all documents. Thus, based on the Contract and SOF, the BD side unloaded the goods late and had to pay a fine according to Article 9 of the Contract. The unloading has been completed for a long time, but the DD still has not paid the fine even though the DD has requested it many times. Therefore, ND sued BD at an arbitration center.
Arbitration award based on SOF
Pursuant to the provisions of law, arbitration procedural rules, Contract, analysis and arguments mentioned above, the Arbitration Council has made detailed calculations and decided to force the Defendant to pay the Plaintiff within the time limit. within 30 days from the date the Arbitral Award was issued, the overdue amount was 53,000 USD [rounded], 1,000 USD lower than the Claimant's request. Payment is made in Vietnamese Dong, according to the selling exchange rate of Vietcombank Hanoi on the payment date.
What is SOF , the content, role and knowledge related to the Statement of Facts has been shared by Proship Logistics. In general, the Statement of Facts (SOF) is an important document, so omissions or inappropriate notes on this document can lead to disputes with unwanted fines. If your business needs to transport containers by sea Domestic/International, contact immediately 0909 344 247 .
